Skip to main content

Full text of "Financial Times , 1987, UK, English"

See other formats


I 





Atari* ...SAE 
B*frwa . . DaJliW 
bigon ... BH«' 
(Ml... CSUK 
Cn»t . . . CEO.JS 
Draw*. D*i 9DG 
Emu .... UZJ2S 
UM .. Ff* ISO 
ftnti .. fR.BJO 
G my. DM 120 
Onto -...fe)0D 
teg tag. HO 12 
tab .... (by. IS 


PMfffr U . PK.20 

Ponagri .. Esc 100 

S. Ante. .RUE.® 
ScglMi . SS4.10 
SpM . . Pu 125 
Sri Inti 

Stem . .5b 8J0 
*«*W SttZO 
Thhb . . . NT OS 
• Tisbta . , Oil 0.600 
Tab? .... 1500 
UJCf. ... Ob 650 
KM..... HXD 


FINANCIAL TIMES 


No. 30,240 _ 


EUROPE’S BUSINESS NEWSPAPER 

Friday May 22 1987 


D 8523 A 


France strives to 
dispel economic 
pessimism, Page 28 


I-i . • * &• 

1 V! * * 


....- ‘tt 




y jj| 


?S1 




-__v. - «■ jeqm 


wlmm 

Wmm 



World news 


Senate 
curb on 
Gulf 
escorts 


The USSenateroted 91 to 5 to stop 
the Reagan Administration imple- 
menting a scheme to protect Ku- 
waiti tankers rata it submitted a 
Ion security plan ior US mid alUed 
farces in the Gulf region. 

. Senators voted tor a foil report 
before the IS implements an agree- 
ment with Kuwait to put American 
flags, on ILaf-Kowaitte 22 tankers 
carrying oil and to escort them 

I fcp pj q g h ff gi ffl i, 

200 banks "will fall* 

A record 200 US banks are expected 
to tail this year, the Federal Deposit 
Insurance Corporation said, nfa 4 

Gold ban Hfted 

France abolished a ban on resi*. 
dents imparting or ex po rtin g gnM 

frntHnn 

UK elections 

Britain's Conservative Party will 
try to gain the initiative today in 
the general ejection following the 
first week at the campaign in which 
the Labour Party has increased its 
opinion poll rating. FageS; Cam- 
paign reports. Places 10 and 11 

Soviets warn US 

The Soviet Union said a US navy 
cruiser had intruded twice into its 
territorial waters near Avacha Bay 
on the far-east Kamchatka penmao* 
la this week, and it has told Wash- 
ington this coukUiave “very serious 
consequences." 

Iraqi compensation - ; ; 

Iraq said; itwauii offer compensa- 
tknr torfemffles -of ^ US saxtars. 
killed infoaSf attack on the fn- . 
gateStotPage* 

radtoheecod i^cau sad to e jaftra a ft 
crash iaii^^^ponrabique Brest* • 
dent -Samora lftpqhd.Bi£$$-ftiKr 
people were kira last October, the 
Soviet Union said. 

Sri L^ikcm polfe y/ 

Sri LnSan - Prime Minister Ba- 
nashinghe Premadasa said local 
elections would be fae& this year 
despite ethnic conflict on the island 
and presMentM andparHaniantoiy 
elections due in 1989 would not he 
postponed 

Contra hearings 

Congressional investigators .at the 
Iran-Contra hearing s in Wadiing- 
ton tried to demonstrate President 
Reagan's involvement with private 
fond-raisixig efforts .for the Nicara- 
guan rebels. Paged 

Bratwurst rules 

Vest Gennady’s Parliament tinned 
down an offer by toe MacDonalds' 
hamburger chain to substitute Big 
Macs for bratwurst in a Bundestag 
fast-food shop. 

India death toll 

The death toll in Hindn-MoslemTi- 
ota m north India rose to 47 after 
fresh vioJence in Meerut Five peo- 
. pie were killed and eight died of 
ywwlt ffltthrinw i hi peviODS riots. 
Mobs burned houses and shqps. 

EC AIDS grant 

Eur ope a n .Community governments - 
pledged Ecu 85m (Slim) in grants 
for a- proposed programme to fight 
the AIDS disease in the Third 
Worid. 


Business summary 


AMC deal 
clears 
major 
hurdles 

ARNAULTS sale of its 48 per cent 
stake in American Motors Corpora- 
lion to Chrysler is expected to be 
completed in 'August, the French 
, state-owned car group saidPage 29 

FIAT has bought out a 50 per cent 
shareholding owned by Nissan of 
Japan, in the jomt venture with Alfa 
Borneo to manufacture the Ama 
model Page 29 

WALL STREET; The Dow Jones in- 
dustrial average dosed up 980 at 
2825.77. FOge 52 1 

LONDON: Nervousness over the 
.latest UK opinion. poDs overcame 
the positive effects of a firmer Wall 
Street and equity prices took a fur- 
ther tumble. The FT-SE 100 index 
dosed 208 down, at 2,153.7, while 
toe FT Ordinary index fell 13J. to 
1,677.7. Details, Page 48 

TOKYO: Small-lot baying of large 
capital stocks »"ri those related to 
domestic demand pushed prices 
sharply higher, and toe Nikkel.av- 
erags ended 334.41 pants up at 
23,75401. Page 52 

GOLD fell $785 on toe London bul- 
fion market to dose at 5470.00. It al- 
so fell in Zurich to $489.45 ($476.75). 

Page 44 

DOLLAR closed in New York at DM 
1.7765, SFr 1.4570; FFr 58425 and 
YM0A5. It rose in London to DM 
L7770 (DM 1.7770 (DM L7745); to 
Y140.45 (Y139JW); to SFr L450O (SFr 
14540b and to FFr 58475 (FFr 
58350). On Bank of En gland figures 
the dollar’s exchange rate fadmr 
rose OJS to 1008. Page 45l 
STERLING dosed in New York at 
&6800. It fell in London to .$18795 
($14-135); and to FFr 98875 (FFr 
£9925); and in SFr 2.45 (SFr 2.4475). 
The pound's rate index 

remained unchanged at 73.7. Fife 

■AUSTRALIAN financier, Mr Robert 
Holmes A Court, has emerged; as 
toe mystery buyer of Texaco shares 
disclosed he spent dose to 

iJKMfoi^acqnirin^ a. JL4: per 'emit 


N-plantltoak . 

A nndear reactor b etan gi n gto t he 
JSjuopesn Commission at Pete ln- 

the Netherlands was closed down 
tetaDy aftera leak of radioactivity. 

Palestinians Jailed 

Two Palestinian guerrillas were 
to - life imprisonemrat in 

Vienna after each was convicted of 

two murders and 12 attempted mur- 
ders during an attack at Vienna air- 
port 17 months ago. 


BRAATHENS SAFE, Norway’s big- 
gest private airline, placed a $2.1bn 
order with Boeing for aircraft to re- 
new andexpand its fleet Page 5 

CDF-CHIMIE, toe French state- 
owned chemicals group, is h oldin g j 
talks which could lead it to taking 
over control of La Grande Patroisse, 
another ch em i c a l s conc ern . P age 38 

FIREMANS FUnd, the big US in- 
surimee group, and a group, of its 
subsidiaries have acquired a 198 
per cent stake in Alexander & Alex- 
ander Services, the US insurance 
broker 49 

ELECTROLUX of Sweden, world's 
leading household ap p li a nces 
group, reported a' 5 per cent in- 
crease in profits even thouito sates 
surged by 71 per cent in the first 
quarter. Page 29 

PREMIER GROUP, South African 
foods producer indirectly controlled 
by Anglo American, boosted pre-tax 

profits 758 per cent in the year to 
March to reach R1538m ($nJun). 

SEAGRAM, the world’s largest 
drinks company, believes the long 
decline in. North American demand 
for spirit has finally ended. Page 49 

MITEL, the loss-making Canadian 
telecommunications equipment 
maker acquired by British Telecom 
last year, has approached break 
even point in operations, but contin- 
ues to pay heavily for past mis- 
takes. Page 29 

CQMPANIA Tetefomca Nacional de 
P spB pn, semi-state Spanish tide-, 
phone, monopoly, annotmemi plans 
to a risk capital venture 

bringing in private-sector sharehol- 
ders and aimed at develo ping ad v- 
anced-technology industries. 

Fage29 

SCHINDLER, Swiss Eft manufac- 
turing group, plans.- to . raise \q» to 
SFr 210m: ($145m) in new partiopa- 
tkm certificate capital to buttress 
an ambitious diversification pro- 
gramme. Page 30 

BQ HOLDINGS is to split its sole 
subsidiary into two. companies via 
an initial public offering for its xer 
mwfrtfeig non-food - businesses and. 

some speciality food lines. Page 29 


e drops $200m 
issue amid 
s’ uncertainty 


BY AMATOLE KALETSKY IN NEW YORK 


CHASE MANHATTAN, the third 
largest US h»"lring group, yester- 
day cancelled a planned capital 
raising exercise, in the first con- 
crete inffiwrtinn of the differe n c es 
of opinion emerging in the US 
banking community about whether 
to follow Citicorp's initiative in set- 
ting - aside huge loss reserves 
nga^Dst its loans to the Third World. 

The Chase decision to postpone 
indefinitely a market offering of 
$200m in l2-year subordinated capi- 
tal notes was due, the bank said, to 
^uncertainties in the marketplace 
resulting from the significant an- 
nouncement by a major bank hold- 
ing company on May 19.* This was 
the day when Citicorp, the biggest 
US bank, resolved to boost tiie loss 
provisions against its Third World 
lending by SSbn, at the expense of 
an unprecedented loss, estimated at 
$24bn before tax in- the c ur rent 
quarter. 

However, the real concern hahwiri 
Chase's announcement was not 
about the stock market's reaction to 
toe Citicorp initiative, which has 
generally been positive, hi fact, toe 

stock market's enthusiasm to Cit- 
icorp shares, which rose another 
$2^4 to S55K yesterday, is becoming 
a mjaor factor contributing to the 
pressure on other leading banks to 
follow suit and bolster their re- 
serves. 

Rather, Chase is understood to 
have postponed its offering because 
it could not give underwriters tire 


J a p ane se banks, with loans to 
less developed countries of about 
$6 8b n, are likely to renew their 
campaign for huger tax conces- 
rions on bad loan writes-offs fol- 
lowing Citkorp'ff move to add 
$3to to its loan reserves. Page 28 


necessary legal assurances about 
its current . profitability, at a tine 
when management is seriously con- 
sidering whether to follow in Cit- 
icorp's footsteps and add substan- 
tially to loan loss reserves. 

In contrast. Bank of America, the 
second largest US banking group, is 
going ahead this week with a SlOOm 
note offering, after saying explicitly 
on Wednesday that it was “not 
aware of any developments which 
would produce a need to adjust- 
ment to reserves.” 

.' By issuing this statement at a 
time when its new capital was be- 
ing marketed to investors, Bank of 
America has probably foreclosed 
the option of major reserve- 
strengthening in ft* iwmatiiite fn . 
tore. Althou gh Chase spokesmen 
stressed that the bank had not actu- 
ally decided to follow CSticarp in ad- 
ding to its reserves, its action in 
cancelling the note offering yester- 
day Is likely to create an expecta- 
tion tof some such action in the 
6tock market 


VW postpones $150m 
investment in Brazil 


BY ANN CHARTERS N|,*AO RAULO. 


VOLKSWAGEN has postponed a 
$150m investment te modernise ifo 
production lines in Brazil this year 
anrid criticism by Mr Wbtfoang San- 
er, tiie multinational carmaker’s lo- 
cal president, who blamed toe Sar- 
ney Government for creating a "cri- 
sis of confidence." 

Mr Sana warned that unless 
Brazil was able to inspire confi- 
dence that it could pull itself out of 
its present economic difficgltias, 
the crisis could lead to industrial 
and social chaos. 

In a hard-hitting criticism of the 
pandas in government, the Volks- 
wagen executive .warned: “Worse 
than the economic e rwria is the cri- 
sis of confidence” in toe country. 

Mr Saner, a nataraHaed BrazQ- 
ian’ was speaking to financi a l ex- 
ecutives in Rio de Janeiro. 

He dted Brazil's eco n o m ic prob- 
lems and inflation rising at 20 pa 


eerie month as dear signs that toe. 
country was entering “a tmroel of 
recession” and reminded his audi- 
ence that the auto industry was toe 
first sector to ester Into recession 
in 188L 

Political squabbling in the past 
few months over ministerial ap- 
pointments and the length of Presi- 
dent Jose Samey’s term in office 
have undermined the president's 
authority and pushed pressing eco- 
nomic decisions to the sidelines. 

- Mr Bresser Pereira, the new Fi- 
nance Minister, is expected to an- 
nounce an economic programme 
within the next few weeks. 

Mr Saua said it was essential 
that the full authority at the presi- 
dency should be restored to solve 
the country’s ec on omi c and political 
problems. 

The Government should then 


move quickly to reach an agree- 
ment with its creditor banks, face 
up to the burden of its $135bn inter- 
nal debt, promote exports and at- 
tract debt-toequity conversions to 
finance investment in basic 
infrastructure such as electricity 
and steeL 

In an ap p a r en t response to Mr 
Sauer's criticisms, tiie Government 
yesterday approved a cut from 30 
per cent to 15 per cent in the com- 
pulsory tax surcharge on cars. 

Direct and intorect taxes until ye- 
sterday represented 70 per cent of 
the final retail price of Br azili an 
cars, the most expensive in their ca- , 
tegories in the world. 

Volkswagen is confirming with a ^ 
5250m investment to its 

production lines, but says tiie cut- 
back is necessary because the mo- 
tor industry is operating at a loss. 


Burlington fends off hostile bid 
with $2hn leveraged buy-out 


BY JAMES BUCHAN IN NEW YORK 


BURLINGTON INDUSTRIES, toe 
world's largest te xtile company 
which has been under threat of hos- 
tile takeover, said yesterday it 
would go private in a $2.07bn lever- 
aged buy-out that will drastically 
reshape the company. - 

The buyout at 576 a share by a 
group led' by Morgan Stanley, the 
blue-chip investment bank, appears 
: to dose a bitter -struggle between 
ihe company’s management and a 
partnership ted by Mr Asher Edel- 
man, a New York investor specialis- 
ing in corporate liqu i da ti o ns . 

Mr TAtlrmm, in partnership with 
Dominion Textile of Canada, bid 
$72 a share or $186bn, for the 
Greensboro; North Carolina compa- 
ny- 

Mr VAriman, who twice raised 
his bid from an initial $60 a share, 
would not comment. Analysts ex- 
pected him to accept Morgan Stan- 
ley's offer and reap a profit of more 
than $90 on the 3.7m Burlington _ 


shares owned by toe partnership. 

Mr Frank Greenberg, who is ex- 
pected to remain as Phan-man and 
chief executive of Burlington, said: 
“We believe that we have fulfilled 
our commitment to maximise value 
to our shareholders.” Before the 
partnership started building its 
stake, Burlington's shares traded at 
under $50. 

The buy-out, which is the largest 
arranged by Morgan Stanley, will 
be finanead m the farm of ft S185bn 
loan from a syndicate led by Bank- 
ers Trust, Morgan Stanley said it 
would put up toe remainder in tiie 
form of ft bridging loan and equity. 
Senior management wifi, be oaerad 
an equity stake: - 

“We are very comfortable with 
management," said Mr Robert 
GreenhiH, hrad of investment bank- 
ing at Morgan Stanley. 

fit a leveraged buy-out public 
shareholders are bought out with 
borrowed funds, which are repaid 
through operational cash flow or 


the sale of assets. 

Analysts say that even with im- 
proving earnings this year, Bu rl i n g- 
ton, which earned $57m on sales of 
$2.78bn last year, will need to make 
substantial disposals to pay down 
the acquisition debt 

"We're going to look at the res- 
tructuring of the business,” said Mr 
Greenhfil. 

Burlington hac spent more 
S2bn in the past 10 years modernis- 
ing its production to co mp ete with 
1 apparel fabric imports from tower-, 
wage countries. 

"Burlington is just beginning to 
reap the benefits of its bilhon-doHar 


program me" said Mr GreenhiU and 

Mr Donald Brennan, head of mer- 
chant banking at Morgan Stanley. 
“It is also now toe market leader 
wnH low-cost producer at a time 
when tiie industry is enjoy- 
ing a strong operating environ- 
ment" 

Lex, Page 28 


CONTENTS — 

.... 2,3 &“***»£* 


. ..... Z.J1 . 

«a m Ewo-op rimi 

Companies jfeunctalAitiim . 41 

Ame rica. - f Geld....:.......... 40 

.. Com i^ n W -- — «« 29. SO Inti, coital Markets.... M 

Overseas .... . - - - - 4 J™...... - 28 

Companies ....*>....34 Lamb**... « 

World Trade 5 Management »»...»»■• “ 

Britain ......... J0» ^ JKSdfoSS »!i: S 

Companies ....... 35-49 « 

Agrtaitifiire *: R°perhr«. v — - 

-H g *« 

-t World Gride M r - Wanstrecl . . 

CemnwriilLiiw .............. H -London .....4S-«,h 

Craeraard Ttctoalocr - * ***i£js 

CnmndM * Unltlrtirts 4« 

Weollw - ‘ ® 


KIM LOOKS 
FOB FIRM 
FRIENDS IN 
A CHANGING 
WORLD 


Knw n Song’s vbit to Beijing signals a 
relaxation of North Korea's isolationist 
stance. Page 4 .. 



Norway and the EC: beginning to feel 

left out 2 

Peru: Garcia survives strike challenge 4 
Management : service economy no pana- 
cea for the US 12 

Technology: Japanese bend the rules on 

the behaviour of light 12 

Jordan: survey 15-18 

Editorial comment: asset prices and in- 
flation; new moves in the chip war ... 26 
Lex: BMW; C. E. Heath; Burlington . . 28 
Sweden: survey Section in 



Chase's shore price rose $1% to 1 
$38 yesterday morning, pl p p g with i 
several other leading bank stocks, , 
in c luding even Manufacturers Han- 1 
over Trust, the US bank which is I 
most seriously enmeshed in Latin i 
America. 

In contrast to BankAmerica, I 
Manufacturers Hanover said on I 
Wednesday that it was reviewing 
‘intensely” the option of reserve 
strengthening in the wake of Citi- 
corp's action. By yesterday lunch- 
time M a nufactu rers Hanover 
shares were up SH at $39%, while 
BankAmerica remained 
at S1L 

As bankers and investors in the 
major US money centres mwtintiwi 
to ponder their responses to the 
week’s events, tiie monetary au- 
thorities in Washington moved to 
close ranks behind the Citicorp in- 
itiative after some early signs of 
disKentinn in the immediate after- 
math of the b ank' s announcement. 

Despite criticisms voiced private- 
ly by some government officials, 
who were concerned that Citicorp 

was breaking ranks with other 
banlre anti might, be titirtoi-mtning 

US efforts to orchestrate the 
world’s response to toe debt crisis, 
Ur James Baker, the US Treasury 
Secretary stated firmly on Wednes- 
day night that he saw Citicorp's 
move as “a positive step." 

Continued on Page 28 


Costs double in 
Bonn-Paris 
helicopter deal 


Mr Francois Mitterrand 

Mitterrand 
supports 
double 
zero option 

By David Houaago In Paris 

FRANCE'S President, Mr Francois 
Mitterrand, yesterday revealed that 
be favoured the Soviet ‘double zero 
option" proposal for removing both 
shorter wnil longer-range US 
Soviet missiles from Europe. 

It is the first time President Mit- 
terrand has indicated publicly his 
position on shorter-range weapons 
(between 500km to 1,000km}, al- 
though his irffiriak have «ii< 
he supported such an accord - in 
part because European public opin- 
ion would Wwd it hard to understand 
a rejection of the current Soviet dis- 
armament proposals. 

He made the remarks in an inter- 
view with West German television 
cm the first day of tiie Franco-Ger- 
man summit. Mr Mitterrand met 

rhanreHnr Helmut Kohl yesterday 
afternoon for talks devoted exclu- 
sively to disarmament Afterwards, 
the Chancellor saw Mr Jacques 
Chirac, tiie Prime Minister, who 
said tiie two countries were moving 
towards a common position. 

While expressing his personal 
preference for the double zero op- 
tion, the President nonetheless em- 
phasised that he did cot want to 
pre-empt any West German deci- 
sion and that a priority was still to 
obtain a European consensus. 

However, his disclosure brings 
him closer to the position outfoxed 
by Mis Margaret Thatcher, tiie 
British Prime Minister, who has al- 
so accepted in principle the double 
zero option while running contrary 
to the views of Mr Chirac and Mr 
KohL 

Presidential officials yesterday 
were keen to play down the differ- 
ence of views, emphasising that at 
this stage no firm positions were 
being adopted. This was seen as a 
reference to Mr Kohl's remarks last 
week proposing that weapons be- 
low the 500km range should be con- 
sidered in the disarmament talks. 

Continued on Page 28 
Soviet satellite offer, Page 3 


BY DAVID MARSH IN BONN 

WEST GERMANY faces total costs 
of around DM 9bn (S5.08bn), more 
than twice as much as originally es- 
timated, under the much-delayed 
plan due to be finally approved this 
summer to build a joint anti-tank 
helicopter with France. 

The cost overrun will place more 
pressure on the defence budget, 
which already faces a squeeze from 
the Finance Ministry in coming 
years. 

The Defence Ministry has come 
in for regular parliamentary criti- 
cism over the PAH-2 helicopter dur- 
ing the last two years. It is prepar- 
ing to defend the latest cost escala- 
tion on the grounds that the project 
strengthens West Germany’s over- 
all defence and security relation- 
ship with France. 

Bonn and Paris are determined 
to go ahead with the project both to 
overcome a series of arms collabor- 
ation setbacks earlier in the 1980s 
and to bolster their countries’ heli- 
copter industries, centred on Mes- 
serschmitt Bdlkow Blohm and Aer- 
ospatiale, against US competition. 

The Bonn Defence Ministry still 
hopes to reduce some elements in 
the latest cost projections before a 
final meeting on tiie matter be- 
tween the two countries’ defence 
ministers probably in July. 

Bonn is also trying to interest 
other European countries in joining 
the project as a way of reducing 
costs. 

The helicopter, first agreed be- 
tween Paris and Bonn in May 1984, 
was then intended to go into service 


in 1993. The aircraft originally 
planned to be offered in three ver- 
sions. has now been reduced to a 

single concept technologically 
much more sophisticated, meeting 
both German and French military 
needs. 

But it is now planned to be avail- 
able by 1997 at the earliest This is a 
decade later than the date envi- 
saged when the project was first 
mooted in the 1970s. 

To bridge what could become a 
serious gap in its defences during 
the 1990s against the Soviet tank 
threat. West Germany is negotiat- 
ing about possibly buying sophisti- 
cated Israeli night-flying derices to 
upgrade older PAH-1 helicopters on 
an interim basis before the PAH-2 
becomes available. 

The Defence Ministry is ex- 
ploring two other possible interim 
solutions. These are to equip the 
PAH-ls with French night-flying 
equipment - viewed at present os 
less suitable than the Israeli appar- 
atus - or to buy outright between 5Q 
and 60 Apache A-64 military heli- 
copters from the US. 

The Israeli negotiations, which 
are still only at a preliminary stage, 
involve as the German industrial 
partner the family-controlled Leitz 
optical company. The talks were 
confirmed by the state-owned Israe- 
li Rafael Armaments Development 
Authority in Haifa yesterday. 

If the deal were to be agreed, it 
would represent a major break- 

Con turned on Page 28 


Shell plans chemical 
complex in Germany 


BY TONY JACKSON IN LONDON 

SHELL International, the world’s 
biggest petrochemicals producer, is 
making its first independent ven- 
ture into large-scale c b^mic nl pro- 
duction in West Germany. 

The company plans a large chem- 
icals complex at CologneWessehng, 
starting with a DM 200m (51128m) 
polypropylene plant 
ShelTs present West German op- 
erations are run jointly with the 
West German company BASF. 

Deutsche Shell Chemie, ShelTs 
West German chemicals subsidiary, 
said it had bought a 540,000 sq m 
site at Cologne-WesseKng next to 
Rheinische Olefmwerke (ROW), the 
joint venture between Shell and 
BASF which runs one of Europe’s 
biggest petrochemical crackers. 

It is believed that up to nine 
plants are being considered for toe 


site, although Shell said yesterday 
it was “modi too early” to discuss 
the others. 

The polypropylene plant, due for 
completion by the end of 196S, will 
have a capacity of 120,000 tenues a 
year, with raw materials being sup- 
plied from the ROW cracker and 
from ShelTs refinery at Cologne. 
The cracker, still being rebuilt after 
an explosion in January 1985, Is due 
to restart later this year. 

The plant will add 10 per cent to 
Shell's worldwide polypropylene ca- 
pacity, currently 12m tonnes, and 
increase its European capacity by 
about a third. Shell claims to be the 
world's second biggest producer of 
polypropylene after Himont, the 
joint venture between Hercules of 
the US and Montedison of Italy. 


#VE 


WO 






^/enterprise 


YOUNG, PTNAMIC AND VERSATILE WORKFORCE gflg LQ V 
AROUNP ONE FIFTH CENTRAL LONDON’S ^ .LONDON 50 MIN r 
^ PRIME M4 CORRIDOR LOCATION - LONDON 90 MINS 


® EXCELLENT ADVANCED COMMUNICATIONS ±9 OUTS’. 


FOR THE FULL STORY, CALL CHRISTOPHER GIBAUD ON ; 

THAMESDCWN BOROUGH COUNCIL HAS A RANGE Of STtS 


./none i 

B- F T- B 7 - 5 —ITS 1 





Financial Times Friday May 23 168 ? 


EUROPEAN NEWS 


Norway fearful of losing its say in Western affairs 


BY WILLIAM DAWKINS, RECENTLY IN OSLO 


NORWAY'S CHANCES of 
making its voice heard in the 
West will be strictly limited 
unless it steps up joint 
foreign policy efforts with the 
European Community, writes 
William Dawkins. 

That is believed to be the 
main conclusion of a White 
Paper on relations with the 
EC due to be presented today 
to the Norwegian Storting 
(Parliament) by Oslo's 


minority Labour Govern- 
ment. While the paper stops 
short of inviting the question 
of whether or not Norway 
should apply for EC member- 
ship, it does call for much 
closer economic and political 
ties. 

The document will not be 
debated unto next spring, 
when political parties will be 
preparing their programmes 


for the 1989 general election. 
Co mmunity membership has 
been a highly sensitive ques- 
tion in Norway since a heated 

referendum voted against 
joining in 1972. 

The report is understood 
to highlight how Norway now 
faces important new chal- 
lenges from the fact that the 
EC has doubled In size and 
grown more stable and 


influential since the 1972 
vote. 

Officials say it calls for 
more involvement in the EC's 
increasingly dose system of 
co-ordinating member states’ 
foreign policies and adds that 
adapting to the Community's 
measures to create a 
genuinely free internal mar- 
ket is a necessity. The Com- 
munity’s joint research pro- 
grammes — currently being 


blocked by Britain. — - also 
presents N o rw e g ia n business 
with key opportunities, says 
the report. 

The pOHathlp ritililTiIi limit 
of an EC delegation in Oslo 
will help, tat the report also 
recommends the establish- 
xoest of a national commis- 
sIod to help r a mpantcs and 
industrial groups to follow 

op and adapt to EC 


Oslo casts the Community runes 



NORWAY TODAY takes the 
first step towards reviving an 
issue which only 15 years ago 
brought its normally pladd 
citizens to the brink of civil 
war: whether to apply for EC 
membership. 

The minority Labour Govern- 
ment of Mrs Gro Harlem 
Brundtland will today place be- 
fore parliament a 120-page 
White Paper on relations with 
the Community. While seeming- 
ly un controversial, it is Oslo's 
first review of its stance towards 
the EC since the populace 
voted narrowly against mem- 
bership in a referendum in 
1972. 

Then, the debate opened 
traumatic splits within political 
parties, the trade union move- 
ment and among ordinary peo- 
ple. Even now, the issue is too 
hot to handle — the paper de- 
liberately avoids mentioning 


membership — for any of toe 
mai apolitical parties to bave a 


formal position on the EC. 

But today's paper is evidence 
of the Government's implicit re- 
cognition, shared by some of its 
opponents, that the question of 
whether to apply for member- 
ship cannot be ignored for much 
longer. 

Norway is not alone among 
the six members of the Euro- 
pean Free Trade Association in 
reassessing its EC links. But 
if it should apply to join — and 
the likelihood is that it will in 
the next decade — its prosperity 
and its Nato membership mean 
it is likely to be more welcome 
than most. Denmark has made 
no secret of the fact that it 
wants its northern ally to join, 
while the other northern mem- 
ber states might well feel that 
Norway would help redress the 
shift of power towards the south 


BY WILLIAM DAWKINS. RECENTLY IN OSLO 

created by last year's accession trade balance from a NKr 
of Spain and Portugal- 39.4bn (£3.5bn) surplus in 1985 

For Oslo the question is just to a NKr 19.4bn (£L74bn) 
become important 


starting to 
for a host of economic and 
political reasons. Thanks to the 
country's rich oil and gas re- 
serves, “ the detrimental effects 
of not being a member have 
come later and slower than ex- 
pected. But they will material- 
ise,” says Sir Kare WlQocb, 
former Prime Minister and a 
staunch pro-European. 

He can point to the disadvant- 
age, felt by all Efta members, 
of being left out of the creation 
of a free EC internal market, 
a project of key importance to 
a country which seends 70 per 
cent of its exports to the 
Community. The need of manu- 
facturing industries for better 
access to foreign markets was 
highlighted harshly by a 
dramatic swing in Norway's 


deficit last year, mainly t ha n k g 
to the fall in oil prices. 

Other arguments for mem- 
bership echoing round Nor- 
wegian industrial groups 
include the trade disadvantage 
of having to submit to anti- 
dumping regulations — which 
apply to a quarter of the coun- 
try's industrial exports — and 
the desirability of gaining 
access to the EC’s joint research 
programmes, which Norway 
seems to value more highly 
than some of the mem- 

ber states. 

Industrial lobbyists’ argu- 
ments have had a sympathetic 
hearing in Oslo, hut so too have 
counter arguments that, with 
less than 3 per cent unemploy- 
ment and a booming economy 
until recently, Norway lias done 


well enough so far outside the 
Community. 

"The problem is. the politi- 
cians want to go last on this 
one,” says Mr Erik Hoff, in- 
ternational affairs director for 
the Norwegian Employers’ Con- 
federation. “We have a lot of 
persuading still to do to get 
them to come out of the cloak- 
room and on to the playing 
field." 

On the political side, one pos- 
sible benefit of membership 
being voiced more frequently 
within the Government itself is 
the prospect of getting dose to 
EC foreign policy co-ordination. 
This is one of several areas 
where Oslo already works so 
intimately with the Community 
that it cannot step up actvitiy 
much more without being a 
member. It matters because 
Norway is frequently finding it- 
self wedged in Nato debates be- 


**I he flieW wfaTTSto to ent back on agrienhyre. \ A * 
newspaper advertisement by Norway's Fanners Unfon glrc* 
dimly h m nai nu ^ expression to its fears about the risks of 
EC membership 

attack from consumers' organi- 
sations, incensed by high food 
prices. 

But the farmers have now 
seen how countries like Greece, 
Spain -and Portugal, have 
managed to go on subsidising 
their own remote fanning com- 
munities, after joining the club. 


tween a ' co-ortiirikted EC 'and 
the US, hi the tarious company 
of Turkey «wi Ti^iiwi 

Meanwhile, there Is growing 
evidence that toe fiercest anti- 
EC campaigners of 15 years 
ago, such as the fanners, fishing 
groups, trade unions and 
religious organisations, are how 
ready to take a more open- 
minded stance, if any of these 
hold the key to the pmzle, it is 
the farmers.' who represent a 
small but palm catiy powe rf ul 
5 per cent of the population. 

In 1972, they feared a possible 
threat to the heavy . subsidies 
that the Government pays to 
support farm production, 
especially in remote com- 
munities that have great 
national and (Strategic import- 
ance. These amount to NKr 11 bn 
tills year, roughly equivalent to 
the total income tax take, and 
are coming under growing . 


The mood of the public at 
large is even less certain. A 
poll at the end of last year 
showed that 18 per cent opposed 
EC membership (far lesa than 
in 1972), 38 per cent wanted to 
join, while « per cent were un- 
decided. That reflects the fact 
that even if It is on the minds 
of many people in Oslo, mem- 
bership Is not formally on any 
political agenda, nor is It likely 
to be until after the next 
general elecion in 1989. But 
the election after that, in 1998. 
might be a very different matter. 


Glasgow 


Edinburgh 


Birmingham 


Cardiff 



Warsaw 


Munich 


Vienna 


Lisbon 


Eurotunnel. 
Look at it this way. 


Naples: 


To*i — . 

MoL&lfife. 

CompadM 


Perth* 


SE 


CACGffl 425M 436.30 
IndTendtfK* 1CKSO lOMO 


Never mind Collier'S wood to Camden Town. 

Forget Arnos Grove to Archway. 

In six years" time, you'll be able to hop on a train 
from Birmingham to Brussels, Or catch the 8.23 from 
Newcastle to Nice (Change at Paris). 

For as the final section of rail is lowered into place 
somewhere beneath the Channel, Eurotunnel won’t simply 
be making history. 

It’ll also create the single biggest unified rail network 
203.10 - in the world. 

Imagine all the advantages that'll mean to the hard- 
ressed international traveller 

For the first time ever, you'll find yourself getting 


1.82 6- 


from A to B without having to worry about sea. 

There’ll be no more humping luggage off the train 
onto the boat and back onto the train again. 

No more pacing the deck worrying about missed 

connections.’ - - • 

And, just for good measure, rail journey times to 
the Continent reduced by about 2 hours. 

Indeed, if you happen to be reading this in the 
queue at Heathrow, consider the following. 



From city centre to city centre, the f EURO 

iTUNfflJ 

train will actually outstrip the plane on ^ J* 

most trips up to 300 miles. A breakthrough 

Beat that for going, Boeing. for Britain. 


Outlook for 

Denmark 

darkens 

By Oar Copm h i gm 
. Correspondent 

DENMARK’S tauce of pay- 
ments deficit should drop to 
around DKr 181m (£1.6bn) 
this year from a r ecord 
DKr 3Lfibn In 1986. according 
to the biannual report of toe 
semi-official Economic Cenn- 
ciL This Is despite grim 
forecasts for the cotmtzy’B ex- 
port Industries and prophecies 
of stagnating econo mi c 
growth. 

The Council survey too 
foresees a farther drop In 
the balance Of p aymen ts 
deficit next fear to aronnd 
DKr film— the’ price Am- the 
- Improvement cim toa -cotmteyfs 
'current: account being nmqt- 


"If the unemployment 
level is to be kept below 11 
per cent of toe workforce, toe 
expected Improvements In 
Denmark's balance of pay- 
ments situation will not con- 
tinue beyond next year,” the 
report, warns. 

Weak international demand 
anda detexfbndori of around 
S per cent in international 
compe titi ve ness' dnete over- 
generons wage rises and an 
-over-valued . krone r -an gar 
‘badly for exports. It adds. 

The Conned forecasts that 
.unemployment- will rise to 
259,990, or 82 per cent of the 
workforce, ' this year. In- 
creasing to 318,000 or ItLfi 
per cent - In 1988, after 
-totalling 212^06 or 7.8 per 
reent in 1986, . 

: r Inflation is expected to fail 
marginally to 4 per cent in 
.both 1987 and 1888 from last 
year’s. 44 per taut 
The Economic. Connell's 
balance of payments forecasts 
•are . more optimistic than 
those of the Ministry of 
Economy's published earlier 
this week. These envisaged a 
DKr 2L5bn shortfall this 
-year.. - • ■ 

In common with the 
Eco n o my Ministry, the 
Council expects continued 
balance in Denmark's state 
budget, which last year re- 
corded a surplus of DKr 21bn 
. for the first time since 1974. 
•However, this Is expected by 
most analysts to drop to 
. DKr lObn this year. 


Oraxi hints 
at his 
position 
after poll 

By John WfM «» 

THE former 

Minister. Mf BattUw Crwk 

yesterday formally 

himself from W 
government which emorgos 
from too general election «« 
June 14 if it. Is M nr * 

Christian Democrat. 

Ho would reconsider only in 
s national emergency 
K new terrorist outbreak wh« 
ha might agw* to «* M rawer 
of the Interior. Otherwise, 
-there will be no mbasttr 
Cnad." toft Socialist party 
leader told a round t«We of 

statement during 
a two-hour interview with 
editors and journalists of toe 
leading Italian newspaper, La 
Kepubbllca, is the first and 
only indication he has yet given 
of too position he will take ra 
the . tortuous post-election 
negotiations on forming; ■ tww 
coalition. . 

It will tend to confirm toe 
view that the only government 
in which be is interested in 
serving Is one he himself leads 
as Prime Minister. 

He seemed to agree with pre- 
dictions that tho prospect of a 
stable government will take 
some time to emerge after the 
ballot, if one emerges at alt 
Yet he did foresee that toe 
five parties which formed the 
two Cr&xl governments from 
1988 until March this year 
would again secure a parlia- 
mentary majority at the elec- 
tion, Ha refused, however, to 
offer any undertaking that he 
would allow his Socialists to go 
into coalition led by the Chris- 
tian Democrats who are expec- 
ted to emerge again as too 
largest Italian party. 

He would have no truck with 
what he alleged to be a Chris- 
tian Democrat attempt to re- 
assert the party's traditional 
hold on government. 

He paid tribute to the sup- 
port too party gave his adminis- 
trations nut argued that the 
centre-right party was bent on 
creating a bipolar system In 
which toe alternative govern- 
ment would be Communist and 
toe smaller lay parties would 
be corralled as Christian Demo- 
crat acolytes. 


Warsaw official 
denies slur in 
| -faceofprotest- 

By Chrbtophar BoMmkl In 
Wmw 

POLAND'S official spokesman, 
Mr Jerry Urban, under pressure 
from protests and a threatened 
court case, has sought to clarify 
and effectively withdraw a state- 
ment he made last month in- 
sinuating that four Warsaw 
academics were involved in 
spying. 

He claimed that Mr Klemens 
Szanlawskl. Mr Bronislaw Gere- 
mek, Mr Janusz Onyszkiewicz, 
all well known Solidarity sup- 
porters, and Ms Magdalena 
Sokolowska, a professor of 
sociology, had met under 
suspicious circumstances Mr 
Albert Moeller, a US diplomat 
caught In a spying incident. 

He now maintains that the 
meetings took place but that he 
did not say the four were in- 
volved in espionage or even 
knew toe American was a spy. 

The Insinuation came before 
expected Solidarity demonstra- 
tion* on May Day and was 
designed to help throw the 
movement off balance as well 
as scare Polish citizens away 
from contacts with Western 

The four, however, have 
firmly denied meeting Mr 
Mueller and have taken Mr 
Urban to court to win a public 
apology. Students and the 
governing senate at Warsaw 
University, as well as is 
prominent intellectuals, have 
also joined a mounting protest 
campaign against the statement. 


Greek current account 
down 10% in quarter 

BY ANDR1ANA IERODIACONOU IN ATHENS 


GREECE’S current account defi- 
cit in the first three months of 
1987 reached $776m, 10.4 per 
cent lower than toe deficit dur- 
ing the same period last year, 
but still uncomfortably high 
relative to the Government’s 12 
month target of $1.25 bn. 

This year is the second of a 
two year economic- stabilisation 
programme hinging on a near 
freeze of wages and salaries. 
Along with positive external 
factors,- such as the fall in inter- 
national oil prices, the stabilis- 
ation programme enabled toe 
authorities to reduce the cur- 
rent account ddflcit last year 
to 81.704bn from a record 
S3.275bn In 1985. 

; As was the case last year, and 
despite the decrease in real 
incomes, due to too stabilisa- 
tion measures, the main limit- 
ing factor on . the current 
account.deficit » proving to be 
a high level , of imports into 
Greece. Between January and 
March non-oil import costs 
went up by 32.1 per cent. Des- 
pile an overall increase of 16.2 
per cent in the value of exports, 
toe trade deficit widened by 5.3 
per cent, reaching $lm42bn. 

Bank of Greece officials attri- 
buted toe ris in imports partly 
buted toe rise in imports partly 


of Greek exports on inuw 
raw materials. 

„£. e , bri8ht ride. i“vi 
earnings increased by 22.1 
cent, mainly reflecting a 
Per cent increase in ean 
from tourism. Worker n 
tsnees also rose by 19J) 
cent, and European Conn 
receipts reached 8391m. a 
of 14.3 per cent. 


FINANCIAL T 

M«xra.Tii2 

S*®“i D.E.P. Pita 
Fruftfun 
Fr* 


RuMulTtanLti, 
nttWClAL TIMES, 

WMO. pubfiflmj 
aunuaj* ujrf ^ 

st'rszrs™ 1 

FOSTMaSTEB 
» FlNANClA 
Stt*.. He* 




*> 


* 


S> 


Vi 




p 



3 


L'v . - 


u hi l \ 


. '“s 


, ' - i* 

■ ' tV- . ’ 


Financial limes Friday May 22 1987 • 


Brussels marks 
down forecasts 
for growth in EC 


BY YM DICKSON IN BRUSSB5 

FORECASTS FOR economic 
growth in the European Com- 
munity this year have been 
revised down, the Commission 
confirmed yesterday. Officials 
in Brussels say they now expect 
gross domestic product in. mem- 
ber states to increase by. an 
average of 2Jt per cent, com- 
pared with an earlier prodic- 
tion of 2.B per cent made in 
the last major .economic fore- 
cast last autumn. 

The West German economy 
is expected to grow by 1.5 per 
cent this year (considerably 
less than thought likely in the 
antnmn), .but Britain’s -rate has 
been upgraded from 2.7 - per 
cent to 3JL per cent. 

The reduced expectations 
were already becoming clear 
in January when the Commis- 
sion updated some .of Its 
earlier findings — but the latest 
exercise is a much more com- 
plete revision of last year’s 
work: 

Lower growth is blamed on 
slower-than-expected expansion 
of world trade and the further 
fall of the dollar exchange rate 
since the autumn. As a result, 
M the prospects for exports and 
consequently those for enter- 
prise investment have deterior- 
ated sharply.” 

Along with the Commission's 
first official growth forecast 


for the Community for 1988— 
only niu r giyui n y . higher than 
.this year at 2J3 per cent— the 
latest figures are considered 
disappointing In Brussels. 
While member states can claim 
five successive years of steady 
2-21 per- cent growth - rates, 
officials point out -that this is 
not sufficient to make a dent 
in unemployment 

Total employment Is now ex- 
pected to grow by only 0.6 per 
. cent thls year, (and 0.5 per cent 
next) but this will be only just 
enough to stabilise the average 
unemployment rate which is 
expected -to: fail marginally 
from 12 per cent last year to 
11.8 per cent this year and next. 

The Commission’s forecast in- 
crease in private consumption, 
meanwhile, has been revised 
downwards from 3.5 per cent 
in the autumn to 3.1 per cent 
jsow. It had been thought that 
the savings ratio of households 
would rise in 1986. and. 'decline 
noticeably this year, but it 
seems now that this pattern 
will not be so pronounced. 

Consumer price . Inflation is 
still expected to.be 3.2 per cent 
(and roughly the same m 1988) 
while the Community’s external 
surplus on current transactions, 
which went down from LI per 
cent of GDP in 1986 to 0.7 per 
cent in 1987, is likely to decline 
further In 1988 to Q.4i>er cent . 


Italian pockets overflow 
with Community cash 


VS igj 
i» nits 

i.ivV **« 


BY JOHN WYLES IN ROME 

ITALY BECAME a net contri- 
butor to the EC budget In 1986 
for the first time in nearly 
seven years . because of the 
government's inability to spend 
Community funds quickly 
enough. 

Inefficient handling of its 
rash entitlements under the 
agricultural, social and regional 
funds means Italy has spent 
only LMOObn (£4bn) of the 
L16,150bn allocated to it over 
the past 20 years. Its total 
share during this period ha* 
been around SB per -cent of the 
grants made under the EC's so- 
called structural funds. 

These figures have been com- 
piled by the Italian Accoun- 
tant General In, the first of what 
is intended to. he a regular 


series -of reports on Italy and 
the Community. Their impact 
on the country’s net -paymets 
to Brussels is such that in 1984, 
Italy received L2,400bn net of 
its payments to the Community 
budget while last year it was 
Ll.lOObn in deficit. 

The report says around half 
of Italy's unspent allocation 
- (L3,370bn) Involves. either "dor- 
mant" projects still - theoreti- 
cally capable of implementtttoii, 
those which have been aban- 
doned, or projects which have 
been overpriced in the original 
■ application for funds. 

An official said yesterday that 
Italy had demonstrated “a fer- 
tile capacity for initiative" in 
t seeking EC money but .oniy a 
mode st_ alrility in. terms of valid 
planning and j 


France 

relaxes 

exchange 

controls 

By George Graham In Paris 
FRANCE'S Finance Minister, 
Mr. Edouard Balladur, has 
taken another hesitant step 
towards removing the foreign 
exchange " controls which 
surround the franc. 

French companies will in 
future be able to mien foreign 
currency bank accounts — In 
France or abroad — and to 

borrow freely in currency or 

in French francs, the 

. announced yesterday. * 

In Ms fifth attempt to 
remove controls since he 
came to the Finance Ministry, 
however, Mr Balladur stop- 
ped . short of removing the 
two principal, remaining bar- 
riers, which prevent French 

K anh furling fftt ffgnfg nv yr . 

. seas and which prevent indi- 
viduals opening foreign 
currency accounts. 

The Government fears that 
complete abolition of controls 
would- expose - the franc to 
dangerous speculative pres- 
sures like those which forced 
its devaluation against the 
D-Mark last January. 

. Companies opening cur- 
rency accounts will not he 
allowed to maintain balances 
of more than a quarter of 
fhetr total overseas turnover. 
They will still be required to 
keep their total cash and for- 
ward purchases of currency 
below the level of their 
future currency spending. 

Mr Balladur also announced 
the lifting of restrictions on 
the import and export of gold, 
and said that the right to 
cany out currency changing 
operations Inside France 
would be opened up. 


EUROPEAN NEWS 


Leslie Colitt in Berlin examines an Eastern Bloc nation’s industrial reform 

East Germany takes own route 


FOR DECADES the slogan "Learn- 
ing hum the Soviet Union means 
learning to win* was one of the 
■most widespread official bywords in 
East Germany. 

It has vanished, however, in the 
wake of the reforms introduced by 
Mr Mikhail Gorbachev, the Soviet 
leader, to revive his nation’s stag- 
nating economy. East Germany 
no detire to emulate reforms which 
it regards as largely irrelevant for 
its economy. 

“Just because your neighbour 
wallpapers his flat does that -mean 
you have to do yours,” was the caus- 
tic comment on the Soviet reforms 
by Mr Kurt Hager, East Germany’s 
ideological chief. 

Raid 1 German nffiftialc ingiirt thprp 
is no need for radical reforms, poin- 
ting to the country's successful eco- 
nomic development since lfl7L That 
coinddentaHy was when Mr Erich 
Honecker, Urn East German leader, 
'came to power. 

By contrast, Mr Gorbachev, who 
will be visiting East Berlin later 
this month for a Warsaw Pact sum- 
mit meeting, has shown strong in- 
terest in the economic lessons to be 
learned from the East Germans. 

Soviet economic officials are im- 
pressed by East Germany’s perfor- 
mance which hag outpaced that of 
the Soviet Union and the remainder 
of Comecon. Of particular interest 
to the Soviets is toe wholesale reor- 
ganisation of East German industry 
since 1979. 

The previous ineffective industri- 
al branch associations - similar to 
those in the Soviet Union -were re- 
placed by the Kombinat (combine), 
a vertically integrated industrial 
trust These giant monopolies en- 
compass everything from compo- 
nents suppliers to end producers as 
well as research and development 
rniHw one central management 

The director-general of a Kombi- 
nat automatically heads its most 


important plant Re is directly re- 
sponsible to the State Planning 

Commission and the appropriate in- 
dustrial ministry for fulfilment of 

toe plan by all the companies und "* 

|iim 

The tight control, exercised from 
above at quarterly and monthly in- 
tervals to assure that targets are 
met is what especially appeals to 
Soviet specialists. 

Unlike *hp Hungarians who have 
relegated the planning mm mi scion 
to a forecasting institute and have 
given considerable autonomy to 
company managers. East Germany 
has streamlined the unwieldy "com- 
mand economy" impost on it by 
Moscow in the post-war-era. 

Economic planners in East Ger- 
many realised before their counter- 
parts in the Soviet Union that gross 
output statistics for steel, machin- 
ery or ships were increasingly ir- 
relevant in measuring industrial ef- 
ficiency. The East German econo- 
my was capable of churning out 
goods at an impressive rate but the 
costs were enormous in materials, 
energy and manpower and the qual- 
ity was often lacking. 

The new Kombinats were quickly 
given net output targets to fulfil but 
these were still an insufficient indi- 
cator of productivity. 

Profitability has now become the 
most important target to be ful- 
filled. More realistic input costs 
were also introduced to force them 
to use raw materials and energy 
more sparingly. A stiff new wage 
tax based on the number of employ- 
ees was designed to make compa- 
nies shed excess labour. 

East German industry is consid- 
erably leaner and more productive 
than its counterparts elsewhere in 
Comecon while remaining,' how- 
ever, at least one third less efficient 
than West German industry. Real 
costs are still only partially reflect- 
ed in higher pikes for producers. It 








f. f*i ■■■-* 


Erich Honecker 
is virtually impossible for planners 
to determine whether the Kombi- 
nats are producing and selling their 
goods profitably or not 

An East German wa shin g ma- 
chine or camera is roughly four 
times the price on the domestic 
market than in discount bouses in 
West Germany. 

Comecon specialists at the Ger- 
man Institute of Economic Re- 
search (DIW) to West Berlin note 
that built-in barriers impede inno- 
vation in the priority sectors of mic- 
ro-electronics, data processing, au- 
tomation technology and biotech- 
nology. Research and development 
Oops in the Kombinats, DWI notes, 
are more severely punished than is 
the lack of innovation. 

East German planners, while 
stressing development of "key tech- 
nologies”, are felt to be neglecting 
the equally vital components indus- 
try. But there are industrial bright 
spots such as printing machinery 
and optics - the Carl Zeiss combine 
in Jena -has several new products 
which are competitive in the West - 
and measurement engineering . 


But more typical is the micro- 
electronics Kombinat which pro- 
duced a 64K RAM chip five years 
after Siemens In West Germany 
and hailed the achi ev emen t. 

Production of personal computers 

— mainly for industry and education 

- began only last year after lengthy 
preparations. The 8-bit PCs, how- 
ever, are only good for the simplest 
tasks. 

Dr Rudi Rosenkranr., director- 
general of the giant Textima Kom- 
binat in Kart Marx Stadt which pro- 
duces textile machinery, said there 
was strong pressure on him from 
above to improve production tech- 
nology and lower costs. His Kombi- ! 
nat has 34.000 employees producing 
everything from electronic control 
systems to needles. 

Only one sixth of output goes to 
the West and two thirds to other 
Comecon countries, mainly long- 
series production to the Soviet 
Union. But, in order to obtain badly 
needed new technology, Textima 
needs to import machinery from 
the West This explains Dr Rosen- 
kranz’s interest in striking a "com- 
pensation” deal with a Western 
company which would take Texti- 
ma products in return for delivering 
the latest machinery. 

Most Kombinat have their own 
foreign trade organisations but Dr 
Rosenkranz noted they have two 
loyalties — “to us and to the Minis- 
try of Foreign Trade”. 

Another problem they face is to 
reduce the enormous stocks they ' 
hold because of erratic supplies, a , 
battle Dr Rosenkranz said had just 
begun. 

Seventy per cent of wages paid to 
workers in the Kombinat are now 
"based on performance" he ex- 
plained. As for his own salary, he 
can increase it by up to 20 per cent 
depending on results. 

"But one doesn't only work for 
money," he added quickly. j 


Agreement near on car exhaust emission 


BY WHUAM DAWVCMS M BRUSSELS 


BRITAIN, France and Italy are 
dose to agreeing to set tough new 
notional controls on car exhaust 
emissions, according to Mr William 
Waldegrave, the. UK Environment 
Minis ter. 

Speaking during a meeting of Ms 
11 EC colleagues yesterday, Mr 
Waldegrave said that Britain was 
ready to go ahead with setting 

fnw^wtruy rlonn ovhwntf wfo 

for anti medium-sized cars 
"as soon as possible” if France and 


Italy did the same. “The indications 
are that they will,” he said. 

If Paris and Rome do agree to toe 
standards, originally proposed by 
the European Commission and in 
use in The Netherlands and West 
Germany, it would mean that aU 
car manufacturing countries in the 
EC would be making clean cars. 

However the potential accord, 
which has been worked on by in- 
dustry nfWpiwfa from the three 
member states far toe past two or 


three months, would only deal with 
cars with engine sizes up to 2 litres, 
rather than aU cars as the Commis- 
sion is proposing. 

EC officials said yesterday that 
all that was holding up an agree- 
ment was the timing of the new 
standards, with Britain wanting to 
move rather faster than France and 
Italy. 

Nevertheless, Mr Waldegrave 
was confident that an accord would 
come soon. "This gives a very dear 


Bignal to car manufacturers that 
they must get on with the invest- 
ment required," he said. 

Under the Commission’s time- 
table - supported by Paris and 
Rome — all small aod medium-sized 
cars would have to conform to the 
new standards in stages by October 
1991. Its proposals have got no- 
wheere once 1985, when member 
states agreed to set their own na- 
tional car exhaust standards in the 
light of entrenched opposition from 


Denmark, which wants tougher lim- 
its than the Commission has sug- 
gested. 

Britain is against setting exhaust | 
controls for large cars because it 
does not believe this would be cost 
effective, but Mr Waldegrave said 
yesterday that his opposition was 
softening in the light of fresh tech- 
nical studies. 

A Commission official said the 
agreement between the trio would 
be "an important step forward. 


Soviet 
offer on 
satellite 
launches 

By William DuUforce In Genova 

FOREIGN companies can send sat- 
ellites into the Soviet Union without 
customs inspection and under 
round-the-clock escort to be 
launched into space on Soviet rock- 
ets. 

This offer, designed to help cir- 
cumvent US restrictions on exports 
of scientific equipment to the Soviet 
Union, was made here yesterday to 
representatives of 12 Western com- 
panies, by Mr Alexander Dunayev. 
Chairman of Glavkosmos, the So- 
viet organisation coordinating 
space technology at a meeting orga- 
nised by the World Economic For- 
um. 

Mr Dunayev also quoted indica- 
tive prices. A satellite could be put 
into geo-stationary orbit on a pro- 
ton launcher, for about S30m, but 
the fee could be negotiated accord- 
ing to the customers specific re- 
quirements. 

A 20 metric tonne pay load could 
be put into earth orbit for about 
S26m and seven metric tonnes could 
be launched on Soyuz Molniya or 
Vostok rockets for between SlOm 
and S14m. Mr Dunayev said. He 
listed seven types of Soviet rocket 
vehicles available to launch pay 
loads varying from 450 kilograms to 
21 metric tonnes into close orbit, 
more on to outgoing planetary 
paths, moon woods or ~mar- 
swoods”. Representatives of five 
or six US companies including Mar- 
tin Marietta International met the 
Glavkosmos chairman. Britain’s 
Hawker Siddley sent a representa- 
tive from its US subsidiary. 
France's Eutelsat and Italy's 
Montedison were also present 

Some thought the Soviet offers 
were "good", Mr Dunayev said. He 
stressed, however, that the Soviet 
Union was not competing in price 
with other countries such as China 
which have recently offered to 
launch foreign commercial equip- 
ment into space. 

The Soviet launch programme 
was heavily charged with national 
projects, but if foreign companies 
could obtain a US licence to send 
their equipment to the Soviet Union 
"we can solve any problems,” Mr 
Dunayev said. 

Ingosstrakh, the Soviet insurance 
company, would insure the launch 
for a premium of about 12 per cent 
of toe launch fee. Customers would 
have to ensure the satellite itself 
with their own insurers. 




'■* is-" 






a- s U 


'38*; 






x-tr 


~ V>r " ' " 1: 


< 9 : 




-<• 


•v*r~ ■ 








■ r > , _ 






mm 


Ua* 


■*" m 'Vwl-7' m h**P r ' 

■ > • 




L# 




















V. 


r^r-s 




iM 

Iff 

1 



$ 


ap.y. 


ifS; 


W- 










§• 


! 


|r 

1 

5?“* 

».cr 

U' 


• -- 




m 

t- 

N— - _ 

' .v> 





K\* 

<*** 

n 



is, 


'C'-: 




til' 





jagg >3 

Wi 

1 




L>r 






tmtr 


Vi 


V; 






,V-:v 








• r- 


. 


”4v*f < 






* 1 






t&A I? 




Jk& 








SB**- 




*> - 




S V 






m-. 


w ny an uce copier win never jam. 


It’s a long and tortuous 
journey, in most mid- 
andhigh-volume cop- 
iers, from die paper tray 
to the receiving tray, hi 
some, it’s a meandering 
route more than a metre long: 

Andat any point, apaperjam can 
force you to a halt 


In an Oce copier; on the other No internal paper jams. It’s just H«t * m Ad**™, — I 


hand, theimage,notthepaper, does one of the reasons Oce copiers are 
the trav elling . The paper path is just relied on in 90 countries around 


44 centimetres long. 

As a result, internal jamming is 
almost impossible. 

hi fact, since you won’t need to 
open the copier for any reason, we 
bolt the access doors shut. 


the world. 

Post the coupon today or call us 
on 01-502-1851./ — 

oce 

Reliable Performance. 


Langston Road, Lough ton, Essex IG103TH 

□ Please send me more information about the copiers that won’t jam. 

□ Please have a representative call me right away. 


■Company^ 


L Post Code. Telephone l 

fl-FT-B 7 -S -22 1 









4 


OVERSEAS NEWS 




wins diplomatic applause in China 


BY ROBERT THOMSON IN PEKING 


PRESIDENT Kim H Sung of 
North Korea arrived in Pelting 
by train yesterday to a welcome 
that was one of the most ex- 
travagant accorded to a foreign 
leader visiting China for many 
years. 

But for all the pomp, and his 
success in convincing his own 
people that he has given them 
a quality of life unmatched in 
the world, the great leader has 
yet to convince China and the 
Soviet Union that the Kim 
dynasty is what the region 
needs. 

His visit to China coincides 
with a shifting in power rela- 
tions around North Korea, 
which has long exploited Smo- 
Soviet animosity and taken for 
granted that its own relations 
with the US would remain 
hostile indefinitely. Yet now 
the ground is shifting beneath 
Kim il Sung and his Beijing 
trip is an attempt to put foreign 
policy on a firmer footing. 


Like China, North Korea is 
suffering from a bout of 
political intrigue. The unusual 
“ Kim is dead ” rumour late 
last year and the even more 
unusual car accident involving 
General O Jin-U, the Defence 
Minister, in ^ongyang's 
uncluttered streets are signs 
that Kim’s plan to elevate his 
son, Kim Jong H, to the throne 
is not accepted by all of his 
subjects. 

An East European diplomat 
said Kim senior will want a 
briefing on who is actually run- 
ning China in the wake of the 
January dumping of Hu 
Yaobang, the Communist Party 
chief. He will want to know if 
Zhao Ziyang, the Premier «nrf 
acting party chief, will be for- 
mally appointed party leader 
at a congress in the autumn, 
and get a measure of the 
Marxist renaissance. 

He will also seek assurances 
from China that its relation- 


ship with South Korea will go 
no farther. Sino-Soufh Korean 
trade was estimated to be well 
over Slbn last year, and China 
has allowed South Korean dele- 
gations to attend international 
forums here. 


But China already seems to 
have drawn a line that it will 
not allow, Seoul, which craves 
better relations, to cross. It is 
understood That China’s 
Ministry of Foreign Economic 
Relations and Trade has issued 
a directive forbidding joint 
ventures with South Korean 
companies, even if those com- 
panies are using front organ- 
isations in Hong Kong to be 
politically discrete. 

Kim will find the Chinese 
unwilling to withdraw from the 
1988 Seoul Olympics, as good 
performances in international 
arenas have became a guide 
for the Chinese masses to their 
country's Improved standing. 


Also, China wants to host the 
Olympics itself and would sot 
want to risk its chances by 

heading a boycott. 

The Chinese are known to 
be concerned by North Korea’s 
granting of overflight rights to 
Soviet fighters and the pro- 
vision of berthing facilities for 
Soviet warships, and will want 
to know how far the North 
Koreans, who have avoided 
being sucked into an orbit as 
a Soviet or Chinese satellite, 
will go to allow Moscow a 
military presence. 


The North Koreans will want 
to know how far China will 
allow the Soviet courtship to go. 
Pyongyang has successfully 
exploited Si no-Soviet tension to 
win concessions from both 
countries, and improved rela- 
tions between the two com- 
munist giants will limit its scope 
for political points-s coring. 

Diplomats believe the Chinese 


will tell Kim what they tell 
every other visitor who asks 
about Sino-Soviet relations. 
While economic relations have 
improved significantly, . the 
Chinese say “obstacles" still 
remain in the path of closer 
ties, particularly Soviet support 
for Vietnam’s occupation of 
Kampuchea. 

Washington's new-found will- 
ingness to allow North Korean 
and US diplomats to meet on 
neutral territory will he 
pondered. The US decision does 
little more than allow freer 
mingling at diplomatic cocktail 
parties, but it is a sign of US 
pressure ou Pyongyang to give 
ground. US officials have also 
hinted, that trade bans on food, 
medicine and other humani- 
tarian Items could be lifted. 



FIJI CRISIS 


Ganilau battles 


against coup 
leader’s ambition 


Kfan n Sung — uneasy Task 


Kim, who is no fool, seems 
to have recognised that the 
years of isolation and the 
“juche" (self-reliance) philo- 


sophy are hurting his country, 
and it is very much “his 
country." Australian tourist 
groups are now allowed to visit 
as are select groups from Hong 
Kong and Britain, and more 
foreign business people are 
visiting Pyongyang, though dis- 
honoured debts and a foreign 
exchange shortage make North 
Korea a risky partner. 


S African 
coal exports 


Tokyo faces fresh US pressure to boost growth 


hit by bans 

BY Gerard McCloskey 
BANS ON South African coni 
imports by France, Denmark 
and the US are beginning to 
hurt the Republic's exporters. 
After a buoyant first quarter it 
has suddenly become clear total 
exports for 1987 could fall by 
over 5m tonnes, a fall of over 
12 per cent with some export- 
ing companies bracing them- 
selves for twice this amount. 
Total exports in 1986 were 
45.5m tonnes. 

The Richards Bay coal 
terminal, which handles the 
bulk of South African exports 
told its member companies this 
week that it expects a through- 
put of just 36m tonnes, down 
4m tonnes from 19S6 volumes. 
The announcement follows an 
assessment from Mr Graham 
Boustred, chairman of the 
country’s largest coal exporter 
Anglo American Coal Corpora- 
tion, that Anglo expects total ; 
South African exports to be , 
5.5m tonnes down at 40m 
tonnes in 1987. 

The squeeze on tonnage is ; 
not the result of the boycotts : 
alone. Oversupply of steam coal | 
is pushing prices down for all 
exporting industries. At the ! 
start of last year South African 1 
coal could be bought in Europe 
for $38, but the price today is I 
almost $10 lower. During the i 
same period the rand has risen i 
from $0.43 to $0.50, putting a 
further squeeze on the industry. 

Mr Boustred estimates that 
revenues will fall by about 
R1.3bn (£3 94m) — a 40 per cent 
fall from last year's R3.2bn. 
The cut in dollar prices has 
sliced R650m off income while 
the strengthening of the rand 
has cost an additional R350m. 
• The Soviet Union said yes- 1 
terday that deliberate sabotage ; 
caused a plane crash in which ; 
Mozambican President Samora 
Machel and 33 other people 
were killed last October, Renter 
reports from Moscow. But It 
stopped short of blaming South 
Africa for the disaster. 


BY PETER BRUCE IN TOKYO 


THE US yesterday increased its 
fierce pressure on Tokyo to 
stimulate domestic demand 
amid signs that the Japanese 
economy is only marking time 
and confirmation that Govern- 
ment growth forecasts for fiscal 
1887 have been cut. 

Mr George Shultz, the US 
Secretary of State, is said to 
have "reminded” Mr Tadashi 
Kuranari, the Japanese Foreign 
Minister, of Japanese promises 
to boost the domestic economy 


in a letter sent ahead of the 
Venice economic summit early 
next month. 

The promises were made by 
Mr Yasuhiio Nakasone, the 
Japanese Prime Minister, when 
he was in Washington in ApriL 
Foreign ministry officials in 
Tokyo said Mr Shultz said he 
was looking forward to seeing 
Mr Nakasone and Mr Kuranari 
in Venice to hear how Tokyo 
planned to make good the com- 
mitments. 


Mr Malcolm Baldrige, the US 
Commerce Secretary, in a 
sharply critical speech in New 
York, said it was "past time for 
Japan to reduce its aggressive 
targetting and export policies to 
a level that is comparable with 
international trading norms.” 
Japan had a S5Zbn trade sur- 
plus with the US last year. 

The US pressure resurfaced 
as the Japanese parliament 
passed its long delayed austerity 
budget for fiscal 1987. Since 


the budget was set late last 
year, the need for a substantial 
new stimulus for the economy 
has become widely accepted. 


The Government plans to 
Introduce a supplementary 
budget later in the summer 
which, some economists hope, 
may help bring bade overall 
economic growth for the year to 
around 3 per cent. 

The original 3.5 per cent 
growth target, set by the 


government's Economic Plan- 
ning Agency was revised down 
at the beginning of the year. 
The EPA said in its monthly 
report to the Cabinet yesterday 


that the economy was making 
hardly any headway because iff 


hardly any headway because iff 
the way the strong yes was 
damaging exports. 

Like a number of major busi- 
ness organisations yesterday, 
the EPA urged the Government 
to do more at home to help <ut 
the country’s trade surplosses. 


BY GBS SHERWELL IN SUVA 

Furs political crisis remained 
unresolved last nW*t 
island state’s Governor General 
battled against the leader of 
last week’s military coup for 
the allegiance of the 
influential Council of Chiefs. 

Rata Sir Penaia. Ganilau, the 
Governor-General, was said to 
be utterly steadfast m bis 
determination to resist Lt-Col 
Sttiveni Rabuka’a continuing 
bid to instil his own council 
of ministers. _ . 

In this the Governor-General 
again received the full endorse 
meat of Fiji’s judiciary, which 
issued. « statement .lmpticmy 
rebuking Col Rahuka by urging 
the army and police to obey the 
Governor-General as paramount 
legal authority. 

The endorsement followed an 
extraordinary radio Interview 
given by the 38-year -old officer, 
in which he claimed he was 
still In control and bad the 
total loyalty of the army and 
police. 

He also declared three times 
that he would never agree 
to anything which would 
jeopardise the objectives of bis 
coup. 

The focus of the Governor- 
General’s unprecedented con- 
frontation was the Great Coun- 
cil of Chiefs, an advisory body 
which is the most influential 


ethnic VtUneaUn institution 

The Council adjourned *«*in 
yesterday after a alb 

day meeting, and Jbllwing a 
mooting between Col Rsbuka 
and the Go*eraoH*«n«n& the 
coup leader's spokwamn and 

*no conclusion ” had been 

reached but that a “compro- 
mise formula” would be con- 
sidered today. 

Although details were con- 
fused, the formula was said to 
Involve the possible coexistence 
of the Goveraor-Ganeral’s 
planned council of advisers 
with Col Rabuka’s Council of 
Ministers. Their membership 
and function were yet to be 
agreed. But it was far from 
clear that the Governor- 
General would accept 

Col Rabuka has some 
important support within the 
Council of Chiefs, but one 
report last night suggested that 
Ratu Sir Kamesese Mara, the 
key figure in the battle of wills, 
was switching his allegiance 
to the Governor-General. 

Ratu Mara, -Prime Minister 
for 17 yean and widely recog- 
nised u the founder of Fiji’s 
multiracial democracy, sur- 
prised everybody after the 


coup last week by accepting a 
position within Col Rabuka’s 
Council of Ministers. 


Andrew Whitley explains why the Israeli foreign minis ter has damaged his career and prospects for Middle East peace 


Peres plays a gambler’s hand and ends up a clear loser 


AN INVETERATE political 
gambler, Mr Shimon Peres has 
just lost one of the biggest 
plays of his career, with dam- 
aging consequences for his own 
leadership as well as the re- 
cently revived Middle East 
peace process. 

Visibly unhappy at having to 
play second fiddle in the coali- 
tion government, since hand- 
ing over the Prime Minister- 
ship last October to Mr Yitzhak 
Shamir, for months the 63- 
year-old Labour leader had 
been looking for a good pretext 
to pull the chair from under 
his old sparring partner on the 
Likud bench. - 

H is own party was chaffing 
in its harness to the Right-wing 
Likud bloc, though their part 
nership was due to run for 18 
more months. And Mr Peres 
was fearful of the opprobium 
he personally is expected to 
reap when two Israeli in- 
quiries into the Pollard spy 
scandal publish their findings 
later this month. 

What the Foreign Minister 
needed was some real sign of 
life in a Middle East peace 
process that was seeming more 
and more moribund, his close 
aides confided; a dramatic ges- 


ture from Jordan’s King Hus- 
sein, perhaps. Some unrealistic 
officials even began trying to 
convince themselves that there 
was a prospect of something 
like the late Egyptian Presi- 
dent Anwar Sadat’s ice-shatter- 
ing visit to Jerusalem a decade 
ago. 


Anticipating the Likud’s re- 
fusal to enter into meaningful 
negotiations — talks which 
would inevitably centre on ter- 
ritorial compromise — Mr 
Peres would be able to present 
himself to the sceptical Israeli 
electorate as a statesman above 
petty party considerations. 
Sweeping, baric to power after 
fresh elections, he mused, his 
place in the history books 
would be assured. 


Six weeks ago, the Jordanian 
monarch appeared to give Mr 
Peres some of the cards he 
needed. True, their meeting in 
London was private, like 
numerous cloak-and-dagger con- 
tacts between them in the past. 
But the concessions the King 
appeared ready to make were 
certainly significant enough to 
convince the US State Depart- 
ment that important progress 
had been made towards the pos- 
sible convening of an inter- 


national Middle East conference 
as a prelude to direct talks be- 
tween Israel and its neighbours. 

While Mr George Shultz, the 
ever-cautious Secretary of State, 
prepared to visit the region to 
put the finishing public touches 
to the embryonic Israeli-Jor- 
danian understanding, over- 
joyed Labour officials busied 
themselves leaking details of 
the “historic chance” they said 
had suddenly materialised. 

Public opinion in Israel 
needed to be convinced. Mr 
Peres, very much the grand old 
Duke of York, had led his 
troops to the top of this parti- 
cular hill several times before, 
ouxy to head back down again. 
But Labour gambled on build- 
ing cp an irrestible momentum 
which would carry the still 
half-formed plan along on a 
tide of national enthusiasm for 
peace. 

What Labour tacticians hoped 
was that the “rejectionist 
front” as Mr Peres derisively 
dubbed Likud and its allies on 
tire Right would be shown up as 
negative and obstructionist 
Some of its parliamentary 
members could in the process 
be detached from their natural 
allegiance to give Mr Peres the 



Government Mr Shamir was, 
they said, equally determined 
to leave his marie on Israel. 


What everyone misjudged 
were the lengths to which the 
Prime Minister would go to 
block the conference proposal, 
even at the cost of upsetting 
seriously - his prod aimed 

“ closest frind,” the Reagan 
Administration. It was a sur- 
prising error for — in contrast 
to Mr Peres — Mr Shamir Is 
always crystal dear in his 
statements, however unpalat- 
able they may be to others not 
of the same ideological persua- 
sion. 


Peres — o utman uoevred 


Knesset majority he lacked. 

Seasoned Western diplomats 
believed that presented with a 
fait accompli Prime Minister 
Shamir would, in the end, cave 
in and agree to participate in 
an international conference 
rather than risk losing power. 
Resentful at the way the Labour 
leader had monopolised the 
glory daring the first. -half of 
the 50-month national unity 


“With an tire anger, an the 
bitterness* we. have In our 
hearts against this perverse and 
criminal attempt we must 
maintain composure and repulse 
(it) with all the. ways and 
means at our disposal. We 
absolutely reject (the inter- 
national conference) from all 


when — - as it could have anti- 
cipated — the peace proposals 
became an issue of confidence 
in the government 

The result was last week’s 
stand-off in the evenly divided 
inner cabinet and, even more 
humiliating, this week's de- 
rision to vote with Likud in * 
parliamentary no-confidence 
vote. 

Outmanoneyred ' tty Mr 
Shamir, who only had to keep 
on saying “no,” Mr Peres con- 
tinues to speak of “going to 
the people" and "letting the 
people deride." There are in- 
deed many in Labour angry at 
the debacle who' would- uke to 
withdraw from the near mori- 
bund Government at tbs time. 


nouncing the international con- 
ference idea "already non- 
existent. 

AH that Labour would 
achieve by bringing matters to 
a vote now would be to leave 
Mr Shamir in power as the 
head of a minority caretaker 
administration, not subject to a 
vote of confidence, and there- 
fore fully capable of staying In 
power until October. 1988. if 
he so wished. 

“ What should we do? Leave 
defence In the hands of Ariel 
Sharon?" Labour officials 


S ed bitterly In favour of the 
:tant decision to stay on 


possible principled and practi- 
cal standpoints,” Mr Shamir 
ti>ld his co-religionists last 
week. 

Labour made a further rash 
mistake before embarking on 
the Jordanian jaunt It did not 
add up the votes the party 
could rely on in the Knesset 


But cooler heads is Labour 
prevailed. Capable of bring- 
ing down the coalition. Labour 
now knows that given the dis- 
position of the small parties, 
most with only one or two 
seats, it does not have the votes 
to force the early elections it 
wants at present: In exchange 
for a promise by Mr Shamir to 
enact further religious legisla- 
tion, the religious parties — 
always the swing factor — have 
moved solidly behind Likud. Mr 
Shamir, meanwhile, is pro- 


in the government. With the 
controversial, ultra-hawkish Mr 
Sharon as Defence Minister, a 
Likud government led larael 
into its painful three-year war 
in Lebanon. 

Aware that he has been 
freshly exposed to the old taint 
of being “minister of wishful 
thinking.” Mr Peres is now 
reassessing the situation. Even 
angrier must be King Hussein. 
The Jordanian monarch him- 
self willing to go a long way 
down Labour’s prospective road 
and. now has tittle to show for 
the risks he took, apart from 
public cmfatrassmcnt in the 
Arab world 


Record 200 US banks 
expected to fail this year 


AMERICAN NEWS 

Donations Barbara Durr on growing discontent with Peru’s President 

for Contras I Garcia survives strikes challeng e 

‘solicited 
by officials’ 


BY WILLIAM HALL IN WASHINGTON 


A RECORD 200 tJS banks are 
expected to fail this year and 
the number of banks on the 
Federal Deposit Insurance 
Corporation’s problem list has 
risen by a third over the past 
two years to 1,531 with total 
deposits of $237bn. 

Mr William Seidman, FDIC 
chairman, in testimony before 

the Senate Banking Committee 
yesterday, painted a gloomy 
picture of a US banking system 
facing declining earnings and 
deteriorating asset quality. 

Last year 138 US banks failed 
and in the first four-and-a-half 
months of 1987 there have been 
78 failures and three cases 
where the FDIC has assisted a 
hank to prevent it falling. Some 
87 per cent of the failures are 
in states west of the Mississippi. 
Banks in Texas and Oklahoma 
alone accounted for about half 
of bank failures this year. 

Of the 1,531 problem banks, 
about 600 were agricultural 
banks and 150 energy banks. 


Some 85 per cent of the hanks 
on the FDICs problem list are 
west of the Mississippi and 
more than 55 per cent are 
located in just six states — 
Oklahoma, Texas, Wyoming, 
Montana, Louisiana and Alaska. 

Mr Seidman said 90 per’ cent 
of US banks were not con- 
sidered problems and failures 
last year represented 1 per cent 
of all banks. 

“Overall, the statistics show 
a reasonably sound industry, 
but the averages mask a num- 
ber of problems,” said Mr 
Seidman. He noted that the 
average return on equity for 

the US banking industry in 
19SG of 8.75 per cent compared 
with 13 per cent five years 
ago. Return on assets had fal- 
len from 1 per cent to 0.74 per 
cent over the same period. 

Moreover, in 1986 non- 
recurring items and gains from 
the sale of securities amounted 
to nearly 25 per cent of the 


total net income of US banks. 

Meanwhile net charge-offs to 
loans had increased from 0.56 
per cent In 1982 to a 0.99 per 
cent in 1986 and despite this 
increase, non-performing assets 
continue to remain high at 1.96 
per cent One side effect of the 
decline In credit quality was 
that FDIC lasses on failed 
banks had risen substantially to 
more than 22 per cent of total 
bank assets. 

“ Even outside the recognised 
problem lending areas it 
appears that banks, overall, 
have had to accept greater loan 
risk in order to maintain earn- 
ings and loan volume. It seems 
clear that the risk in the system 
has been increased by deterio- 
rating loan portfolio quality” 
said Mr Seidman. 

He said that he expected the 
number of problem banks, 
which only six years ago total- 
led 217 with $2l,ebn of 
deposits, to peak next year, 
then start declining. 


Iraq to compensate US sailors’ families 


BY OUR MIDDLE EAST STAFF 


IRAQ HAS said it will offer 
compensation to the families of 
the 37 American sailors killed 
in the attack on the US frigate 
Stark in the Gulf on Sunday. 


In a television interview on 
Wednesday night, Mr Tareq 
Aziz, Iraq’s deputy Prime 
Minister, when asked whether 
Iraq would pay compensation to 
the families, said: “We will 
respect our obligations in this 
respect.” He did not say 
whether Iraq was ready to com- 
pensate the US Government, as 
it has requested. 


Mr Aziz said the Iraqi pilot 
Of the Mirage F-l jet .which 
fired two missiles at the Stark 


believed he was attacking an 
Iranian ship. 

Yesterday, a US Navy board 
of inquiry opened in Bahrain 
to try to determine how the 
attack happened and why the 
Stark did not defend itself. The 
hoard, headed by Rear Admiral 
Grant Sharp, a senior Pentagon 
official, will interview survivors 
of the attack. 

The US has extended by two 
months the tour of duty of the 
frigate Groves, a member of 
its seven-vessel Middle East 
Force which had been. due to 
return to the US in mid-June. 

In Washington, congressional 
leaders warned that the attack 
could complicate the Reagan 


Administration’s plans to sell 
12 F-15 fighters to Saudi Arabia. 
The Saudis failed to respond 
to US requests to intercept the 
Iraqi aircraft that attacked the 
Stark. 

White House officials said the 
Administration’s formal notifi- 
cation to Congress of the in- 
tended sale may be delayed 
“ because of the political 
climate." 

Four senators led by Arizona 
Democrat Daniel DeConcini 
have Introduced legislation to 
block further arms sales to 
Saudi Arabia until there is an 
investigation into why Saudi 
jets did not intercept the Iraqi 
fighter. 


By Namy Dunne in Washington 

THE Iran/Contra hearings took 
a new turn yesterday as con- 
gressional investigators -sought 
i to demonstrate the involvement 
of President Ronald Reagan 
and otber US officials in private 
fund-raising efforts for the 
Nicaraguan rebels. 

Three wealthy conservatives 
i described how they had been 
briefed by Administration 
officials about the needs of the 
Contras and had then been 
solicited for donations by Mr 
Carl Channell. a private fund- 
raiser. Ur Channell pleaded 
guilty last month to involvement 
in a tax fraud scheme. 

Mr William O'Boyle, an afflu- 
ent New Yorker, said Lt General 
Oliver North had shown him a 
list of weapons needed for the 
Contras and had told him of a 
secret airport built by the 
Sandinistas, intended “ to 
recover the Russian Backfire 
bombers after they made a . 
nuclear attack on the United 
States." 

He then donated $130,000 to 
the cause. 

Earlier, Senator Paul Trlble, 
a Virginia Republican and a 
member of the panel, 
denounced reports that Maj Gen 
Richard Secord is attempting to 
block the release of Swiss bank 
records connected with the Iran- 
ian arms sales. 

The former air force general, 
who supervised the sale of US 
weapons to Iran in exchange for 
American hostages, had por- 
trayed himself before the inves- 
tigating committee as a patriot 
with nothing to hide. 

"The general’s actions will 
Inevitably frustrate and delay 
the pursuit of truth and are 
totally inconsistent with his 
(.Seoord's) words of cooperation 
and good faith," Sen Trlble said. 


PRESIDENT ALAN GARCIA of 
Pent has emerged relatively 
unscathed from a four-day 
police strike and a more tame 
24-hour general strike, in both 
cases avoiding greater potential 
violence. 

The two strikes, however, 
mark a new phase of popular 
discontent with his government 
at a time when the annualised 
inflation rate Is more than 100 
per cent. 

The police had wide public 
support for their wage demands 
and partidpatian in the general 
strike, called by the communist 
trade union federation Con- 
federadon General de Trabaja- 
dores del Penis, was higher 
than even its organisers had 
hoped. 

Leftist politicians oiai™ that 
in metropolitan Lima, the 
country's industrial heartland, 
about half the workforce stayed 
home. The government admitted 
25 per cent 

Til ere have been questions 
about how President Garda 
handled this latest crisis. It is 
unclear how the government 
allowed, the country’s 90, 000- 
strong police force to reach the 
point of going on strike. Fingers 
nave been pointed at Interior 


BHnister Abel Salinas, whose 
resignation was demanded by 
the police strikers. A rumour 
that he had resigned was denied 
by the President 

It appears the minister was 
caught off guard by the strike. 
Once it began last Friday morn- 
ing its militancy was under- 
estimated. An Interior Ministry 
spokesman said then that the 
government intended to let the 
strikers "run out of steam.” 

That did not happen. Instead 
hundreds of strikers and their 
leaders, holed up mainly in (me 
large central Lima garrison of 
the Civil Guard, remained 
adamant. Although they were 
surrounded by the army, which 
had taken over their duties, 
they said they would not budge. 

President Garcia, who had 
gone to Uruguay on Friday, 
returned to a far more serious 
problem by Saturday morning. 
By Sunday night, with the 
Tuesday deadline for the 
CGPTs general strike approach- 
ing, President Garcia began to 
engage in brinkmanship. 

He accused the strikers of 
“ facilitating terrorism ” and 
threatened to use the army to 
dislodge them. 

Given that the result was 



Alan Garde: willing to 
gamble with violence 


likely to be a bloodbath 
between police and army, this 
shocked an already tense 
public. 

The consequences of Brest- 
dent Garcia's willingness to use 
force last June to quash three 
prison riots, has not been 
forgotten. Between 250 and 300 


prisoners accused of terrorism 
were killed. Twelve years ago 
during a police strike the army 
had been sent in and more 
than 100 police officers were 
killed. 

The' striking police left their 
garrison but did not end their 
stoppage. 

By Monday, on the eve of the 
general strike, the Government 
was forced to concede to more 
than double the basic police 
salary. It Is estimated that this 
will add S10m, or about 5 per 
cent of government revenues, to 
a 'state budget already heading 
for a serious deficit. 

Referring to the fact that no 
concessions were made as a 
result of the general strike, an 
editorial in a leading popular 
newspaper said: “ To raise some 
and postpone others will not 
contribute much to social peace, 
and probably this will be con- 
verted into a platform for a new 
cycle of popular demonstra- 
tions." 

Senator Valentin Pacho. 
secretary general of the CGTP, 
said: " The general strike is 
just the first in a series of steps 
against the economic policies of 
the Government." 


Argentine military abuses bill held up 


BY TIM COONE IN BUENOS AIRES 

A BILL before the Argentine have said it was necessary “to 


Congress aimed at absolving avoid a repetition of the Easter 
juzuor- and middlManking weekend events.” 


officers from responsibility for T . .. 

crimes committed during mili- . month, army units led 


wuues cammiEieo aunng mill- . ”T“ , “xp uuu ieu 

tary rule before 1983 bas Junior officers took control 
become bogged down in the of ^ everal nuU **iy bases hi the 

Cm.«. canital nnd tha nnrfh *h. 


uuggea uuwu in mp , — u, 

Senate where conservatives oapttai and the north of the 
want it extended to senior ‘5 unt ??' denuding an end to 

— m — tn A mTvnnn noKts * * t _ ■_ 


•• ****** ** cAkcuucu lu acuxur .1.. 1^ , . « — . « 

ranks. the human rights trials In 

In a secret session on which almost 400 members of 
Wednesday, the Defence Minis- security forces stand 
ter, Mr Horacin Jaunarena. a-nrt accused Of abuses. 


ter, Mr Horacio Jaun arena, and 
head of the intelligence services 


Congress approved the blD 


nwiuveu me nui 

S “ arez » “ an iast week. In the Senate, how- 


of the bill, briefed '1 SSSS Si’ « hl^TnSiSrtSf 5lg 
on unrest in the aimed forces, facing difficulties wrth conserva- 
Mr Jaun arena is believed to live opponents who want to see 


the bUl extended to absolve 
Senior ranks. Thi* would make 
<he bill in effect an amnesty for 
ati those responsible for the 
dirty war” of the 1970s in 
which more than 8,000 persons 
disappeared after arrest by 
by security forces. 

President, Raul Alfonsin and 
leading members of the Radical 
Party have expressly ruled out 
an amnesty. 

^ A ^ 6r secret session in 
the Senate on Wednesday con- 
servative senators were not 
convinced that the govern- 
ment’s "limited amnesty" would 
be enough to settle the unrest 
in the armed forces. 


US eases rules 
for AIDS drugs 


THE REAGAN Administration 
has completed, controversial 
new rules easing the availability 
of experimental drugs for AIDS 
and other deadly diseases. 
Kenter reports tram Washing- 
ton. 

An administration official said 
the rules would allow drug com- 
panies to begin railing experi- 
mental therapies at an early 
stage in their development and 
well before , they gained final 
marketing approval from the 
Food and Drug Administration. 

Under current FDa pro- 
cedures, it usually takes seven 
to nine years for a new therapy 
to proceed 






■■ , TV J 
• ■» * *.-* 
, «+? 


I 


'• H I f 




5 


W 


Financial Times Friday May 22 1987 


WORLD TRADE NEWS 


Hip 


iscr 


US will 
continue 
sanctions 
on Japan 

US trade sanc t ions against Japa- 
nese exports to the US are likely to 
last beyond the summit meeting ol 
industrial nations in Venice 
month. Beater reports from Wash- 
ington. 

Mr Marlin Fitzwater, the White 
House spokesman, when if 
the trade curbs might be lifted be- 
fore the June 7-10 summit said; "Of 
course if s always possible (but) I 
think if s unlikely." 

President Reagan had said dar- 
ing the visit here last month of Mr 
Yasuhiro Nakasone, the Japanese 
Prime Minister, he would like to see 
the tariffs “lifted before the summit 


EC to launch probe 
into music tape piracy 


BY WILLIAM DAWKINS IN BRUSSELS 


THE EUROPEAN Commission 
is to launch an Inquiry into 
allegations that Indonesian 
music pirates are Illicitly 
copying cassette tapes. . 

According to the Inter- 
national Federation of Phono- 
gram and Videogram Producers, 
which has appealed to the Com- 
mission for action, the practice 
is costing EC music companies 
around 9150m a year in lost 
sales. Illicit Indonesian cassette 
copies are believed to be sold 
widely In Asia and the Middle 
East 


The federation's complaint 
accuses the Jakarta government 
of failing to take effective 
action against pirates and being 
responsible for damaging EC 
•businesses. The inquiry will 
take five to seven months. It is 
the second time the Commis- 
sion has made use of a three- 
year-old regulation — the New 
Commercial Instrument — de- 
signed to allow tougher and 
faster action against unfair 
trade practices that are not 
already - banned by other 


Community rules. 

The instrument was first used 
to follow up a complaint by 
Akzo, the Dutch chemicals 
group, that Dupont, its US com- 
petitor had wrongly used some 
of its patents. The dispute has 
since been taken to the General 
Agreement on Tariffs and Trade 
(Gaftt). 

Commission officials said any 
action against Indonesia would 
be determined by the result of 
the inquiry, which is likely as 
in the Akzo case, to be referred 
to the Gatt 


Other said it wigM be 

possible to lift a portion of the 100 
per cent tariffs this month. . 

The tariffs on 5300m worth of 
television sets, personal comp u ters 
and power tools wen imposed in 
April because Japan had not hon- 
oured a 1988 semiconductor agree- 
mart with the US. 

US officials had said there would , 
have to be proof Japan was hon- 
ouring the pact, which President 
Reagan had said Japan had broken 
by continuing to dump »miw»rin<w 
tors on world markets at less *h*n 
COSt by hoping its xuar- 

ket dosed to US goods. 


Road funding may reach $40bn 


BY NANCY DUNNE IN WASHINGTON 


FUNDING for road projects in the 
Third World from commercial 
sources and development banks 
may reach $40bn over the next five 
years, according to a report by a 
Washington consulting group, 

Mr Nicholas Ludlow,- ma n ag in g 
director of Devfeopment Bank As- 
sociates predicts that Development 
Bank commitments to roads will 
rea& $10bn to SISbn for projects 
with a total cost of S3Zbn to ttObn. 

He said Development Banks 
would cover 50 per cent to TO per 


cent of file exchange needs of devel- 
oping countries for maintenance 
and improvement of roads (hiring 
the five years, as well as funding 
for new roads. 

Multilateral development bank 
commitments in Africa, Asia, Tjrfrn 1 
America and the Middle East are 
running at about SL4bn a year. 
However, the need to build up the 
infrastructure is expected to boost 
spending to between S2.1bn and 
S1.7bn a year. 


The private sector will provide 
about S2 for ever; dollar spent by 
the banks, said Mr Ludlow. 

According to the report, The De- 
velopment Bank highways market 
1987-1991, A Practical Reference 
Guide, financing of civQ works on 
road projects will reach between 
S29bn and SSBJTbn. About $L4bn to 
SL7bn will be spent on technical as- 
sistance, tnnlnrifng mgimmring 

The projects should provide a 
.boost fig equipment manufacturers. 


Belgians’ 
LNG row 
goes to 
arbitration 

By Franck Chiles and jama Bull 

DISTRIGAZ, the Belgian gas 
company, !g to resume 
arbitration to help solve Its* 
long running dispute . with 
Soxuatrach, the Algerian oil 
and gas monopoly, over die 
terms qn which it Imports 
liquefied natural gas (LNG). 

The Immediate Impact will 
be to rat the free an board 
price of the gas from S&83 
to $2.02 per milli om British 
Therm sd Units (Btn). The 
cost for Dlstriga* at the 
Belgian border will decline 
from $&65 to $2A2 per 
milli on Btn. 

Algerian LNG for Belgium 
is imported through the 
French terminal at Montolre 
de Bretagne, south of Nantes, 
but the Belgian terminal — 
nearing completion at Zee- 
brngge — will receive Its first 
cargo of LNG next month. 

The Belgian company 
asked the Internal tonal 
Chamber of Commerce to 
arbitrate Us dispute with 
Sonatrach in April 1386 hut 
froze the arbttratkoi pro- 
cedure three mnmtiHt later, 
after agreeing a one-year 
irrevocable Interim deal 
which accepted ft idmil— ■ 
price structure to that agreed 
by GftZ de France with 
Sonatrach in March 1988. 


Boeing wins $2.1 bn 
orders for new jet 


BY LYNTON HcLAIN 
BOEING has launched another 
version of its 737 twin-jet air- 
liner, the Boeing 737-800, with 
the announcement of orders for 
51 of the new airliners from 
four airlines, with options on a 
further 22 airliners. 

The combined orders op- 
tions will be worth $2J.bn at 
the time of delivery. 

The latest version of the 737 
is designed for lower density, 
short-to-medfum range routes, 
with the first aircraft to be 
rolled out In May 1989, and first 
deliveries in March 1990. 

Braathens SAFE of Oslo, 
Norway has ordered 25 of the 
aircraft for delivery between 
March 1990 and the end of 1994. 


Southwest Airlines of Dallas, 
Texas has ordered 20 of the 
122 seat aircraft for delivery 
between March 1990 and 1991, 
with options on 20 more 

Euralair of France indicated 
to Boeing it would buy three 
aircraft with options on two 
more, for delivery la 1992 and 
1993. 

An undisclosed fourth airline 
is also to order three of the 
new airliners for delivery in 
1990. 

The new Boeing 737-500 air- 
liners will be powered by the 
Franco-US CFM56-3-B1 engines, 
at up to 20,000 pounds thrust, 
made by CFM International, 
jointly owned by General Elec- 
tric and Snecma. 


Spanish telephone group 
in Soviet joint venture 


BY DAVID WHITE IN MADRID 

SPAIN'S semi-state telecom- 
munications group, Com panto 
Telefonica Naciona] de Espana, 
js due to complete negotiations 
in the next few weeks on a 
joint venture to produce tele- 
phone sets in the Soviet Union. 

Mr Luis Solan a, Telefonica 
chairman, said yesterday the 
initial investment would be 
about $Sm and the final amount 
considerably greater. 

Telefonica said the unit 
would produce "medium tech- 


nology" telephones using 
printed circuits for the Sovieti 
and Eastern European markets. 
Production of 300,000 units a| 
year is foreseen. The Spanish 
partner would take 20 per cent! 
of the production l 

Meanwhile, he announced an 
initial agreement with American 
Telephone and Telegraph to 
build a Pta 4bn ($S2m) plant 
in the northern Asturias region 
to make equipment for tele- 
phone cable networks. 


Fujitsu 
supplies 
chips to 
Fairchild 

By Carla Rapeport in Tokyo 

FUJITSU has begun supplying 
Fairchild Semiconductor with 
sophisticated microchips, des- 
pite its recent withdrawal of a 
bid to acquire an 80 per cent 
stake in the company from its 
parent company, Schlumberger. 

The Japanese electronics 
company is also understood to 
be discussing the acquisition of 
a 10 per cent stake in Fair- 
child. Fujitsu dropped the 
larger Fairchild bid earlier 
this year in the wake of strong 
US political pressure. 

Fujitsu yesterday refused to 
confirm or deny the reports of 
its bid to acquire a smaller 
stake in Fairchild. It did con- 
firm. however, that the new 
microchip business between the 
two companies emerged from 
its acquisition talks with Fair- 
child. 

The company said that it was 
supplying a 32-bit microproces- 
sor unit to Fairchild. These 
components are used in work 
stations and personal com- 
puters. Fujitsu is also supplying 
specially designed integrated 
circuits. Sales of both products, 
it said, are small, but could rise 
substantially in future. The 
products will be sold in the 
US under the Fairchild brand. 


Egypt now ripe for investment 
from abroad, says trade body 


BY TONY WALKER IN CAIRO 

EGYPT offers new opportunities 
for foreign investors interested 
in import substitution projects, 
according to a report by the 
UK-based Committee for Middle 
East Trade. 

Hie Comet report said new 
import restrictions and foreign 
exchange shortages were bring- 
ing better prospects for inves- 
tors in enterprises manufacture 
ing for the Egyptian domestic 
market. 

The report predicted that 
during the -five-year plan. 
1967-88 to 1991-82, foreign 
investment in Egypt would piek 
up. Apart from the petroleum 
sector, such investment has 
been disappointing. 

The Improvement will result-, 
from the greater emphasis to be! 
given to the private sector in 
the next five years. The Comet 
report said - foreign direct 
investment in Egypt,. accorifing. 
to a recent International" 
Monetary Fund study, amounted . 
to only 8 per cent of total, 
external liabilities. 

The report forecast that in 
common with, several other 
Middle East countries, Egypt 
would embark on a programme 
of privatisation of Inefficient 
public sector companies which 
account for about 70 per cent 
of the state's productive sector. 

Comet said the experience of 
many investors had been nega- 
tive, but circumstances were 
improving because the Egypt- 
ians were gaining experience in 


THE BRITISH - uanased 
Tttdor Hotels Overseas is to 
take over management of 
three of Egypt’s eld hotels 
under a long lease. 

The Jersey-registered com- 
pany will spend about S4m 
upgrading the £3 Borg 
Scheherazade hotels In Cairo 
and the Luxor Hotel In Upper 
Egypt 

dealing with foreign investment 
The legislative climate, for 
example, was better. 

Comet said that while the 
record of British investment in 
Egypt — about $50m in more 
than 70 projects— was on the 
whole good, there was no use 
pretending that British com- 
panies found the investment 
road easy. . 

N Many have withdrawn after 
a number ot yea ra, frustrated 
by Egypt’s notorious bureau- 
cracy and despairing of their 
ability to make a project pay/* 
tire report said. . 

" Others have been dis- 
couraged by .the .country's 
deteriorating economic climate 
and the difficulties caused by 
tiie fact that the economy is 
still in many senses passing 
through a transitory phase.” 

Comet recommends investors 
to go for an import substitution 
project or the manufacture of 
a product for which foreign 
investment already has the 
blessing of the appropriate 


Dyno wins contract 


KAREN FQSSU IN OSLO 

DYNO INDUSTRIES the lforwe- 
gcuo industrial group, has won its 
first contract in New Zealand. It 
will supply A. C. Hatrick with a pro- 
duction plant tor formalin and urea- 
fiutnaldehyde resins used to mania- 
facturr glue for the wood process- 
ing industry. 

The value of tbe contract is NKr 
28m {11.03m). The total cost of the 
pro jot, which includes buildinga 
new wood processing plant by ACH, 
is estimated to be NKr 40m to NKr 

50m. The new plant, to be sited 1 at 
Plymouth cm the west coast of the 


North Island, w31 be a combination 
wood processing and gfae m a n u fac - 
turing operation. 

Tbe combined plant is expected 
to come on stream during 1988. For- 
maldehyde-based resins ate used in 
the manufacture of particle board, 
plywood and fibreboard. 

Dyno is expected to defiver the 
process equipment for the glue 
manufacturi ng plant in early 1988- 
lt has built 16 such plants world- 
wide and has three under construct- 
ion. Last month it secured a si milar 
contract in China. 


To the Holders of . 

KON1SHIROKU PHOTO INDUSTRY CO., UTD 
U.S. *50,000,000 

4 per cent. Convertible Bonds 1999 

NOTICE OF BONDHOLDER OFTIONTO CALL FOR BEDE^TION 



of theBonds. 

KCHflSHIBOKU PHOTO INDUSTRY CO., im 

Dated: M*y 22. 1987 ' 


- ministry or state company 
concerned. 

The investor should find a 
local private sector partner with 
a good financial and political 
position and existing approval 
to manufacture the product in 
question. The investor should 
also ensure that the project 
can compete with the public 
sector which benefits from price 
subsidies and other advantages. 

Other rules include the need 
to avoid conflict with labour 
unions which are relatively 
strong in Egypt. Investors are 
also advised to establish dear 
understandings about Import 
duties on components and raw 
materials. 

“ Researching and applying 
for Investment approval can be 
a lengthy process,” Comet 
warned. " 

“If, after a reasonable 1 
assessment of « ; project. It 
seems unlikely to succeed, stop 
and lode at alternatives, or 
shelve research for a period 
until the cKmate has dunged." 

"Money can run away with 
you in Egypt and if nothing 
looks like maturing after a 
reasonable period ot time yon 
are probably approaching the 1 
project in the wrong way. and 
may well be faced with terms 
and conditions which will not 
be acceptable to your main , 
board." 

Investment Prospect* in 
Egypt, January, 1987, Committee . 
for Middle East Trade. 


Poland signs 
protection pact 

By Chr is topher BoMnaM 
in Warsaw 

POLAND'S first investment protec- 
tion agreement, complementing 
last year’s law permitting joint ven- 
tures with foreign capital, was sign- 
ed this week with Belgium at the 
close of a three-day visit to Poland 
by Mr Leo Tindemans, the B elgi a n 
Foreign Minister. 

The agreement guarantees 

against expropriation of foreign in- 
vestments in ftoland and includes 
provision for repatriation of profits 

South Korea 
places curbs 
on exports 

SOUTH KOREAN exporters 
will have «o seek government 
permits to sell video recorders, 
microwave oveos. colour tele- 
visions and seven other pro- 
ducts abroad, Reuter reports 
from Seoul. 

The restraint, from July, is 
part of South Korea’s efforts to 
limit Mb trade surplus and avert 
a trade war with Washington, 
the Trade Ministry said. 

The other seven items are- 
black-and-white televisions, 
stuffed.- toys, pianos, leather 
bags, fishing rods, tarpaulin 
products and braasware. 

. "Exports of the 10 items rose 
about 50 per cent to 3443m in 
the first four months of this 
years over the same 1986 period 
and accounted for 12 J> pear cent 
of our total exports to the US, 
the ministry said. . . 

Exports to tbe US of 12 more 
products have already been 
voluntarily regulated. They in- 
clude steel jroducts, footwear, 
containers, wigs and leather 
garments. 

Officiate say South Korea wifi 
lzy to hold Ms 1987 trade sur- 
plus with tbe US below $Sbn. 
The was $7*3bn test 

As part of that effort South 
Korea last month unveiled a 
list of $ 2 . 6 ba of US goods it 
will buy this year. 


SIEMENS 


The way to the stars 
begins at Congleton, Cheshire 



" Therels a great deal of high-tech 
activity going on at Congleton in Cheshire 
where Siemens develop and manufacture 
some of todays most advanced 
communications products, exported to 
countries worldwide. 

Like the sophisticated satellite 
transmission system installed at satellite 
ground stations in West Germany, the 
Netherlands and Saudi Arabia Or, closer to 
home, a similar project at the Goonhilly 
satellite station in Cornwall. 

Congleton is also the UK centre for 
3^ automation systems, providing solutions for 
h " 3 factory automation from its team of 
specialist engineers and applications 
software centre. 

Siemens is one of the worlds largest 
and most innovative electrical and 
electronics companies, wrth a clear 
commitment to providing a consistently 
high standard of service to our customers - 
particularly in 

• Medical Engineering 

• Factory Automation 

• Data Systems and Communications 

• Electronic Components 
•Telecommunication Networks. 

In the UK alone, we employ around 
■3000 people in five manufacturing plants, 
research & development engineering, 
service and other customer related 
activities. 

Siemens Limited, Siemens House, 

Eaton Bank, Congleton 
Cheshire CW12 1PH 
* Telephone: 0260 2 7B311 




Satellite-ground station at Goonhilfy 
Downs, Cornwall 

Innovation 

Technology 

Quality 

Siemens 











• . - -.-rt i •: 


6 


Fuiaaoial Times ftWejf 8 1967 


Tories seek to call tune 
as polls lead narrows 


BY PETER RIDDELL, POLITICAL EDITOR 


THE CONSERVATIVE PARTY wfll 
this morning seek to gain the initia- 
tive in the general election after the 
first week of the campaign in which 

the Labour Party has made the run- 
ning and has increased its opinion 
poll rating. 

Confirmation of this trend comes 
in a Marplan survey in today's 
Guardian which puts Labour on 33 
per cent, although the Tories re- 
main dearly in the lead on 41 per 
cent with the Social Democratic 
Party/Liberal Alliance on 21 per 
cent These figures, and particular' 
iy the Alliance rating, have to be 
treated with some caution since 
other parties are put at an excep- 
tionally high 4 per cent 

Over the past week. Labour’s av- 
erage rating in the polls has risen 
by four points to 33 per cent with 
the Tories slipping back slightly to 
42 per cent and the Alliance f alling 
over two points to 23 per cent This 
would still be sufficient to give the 
Tories a comfortable working ma- 
jority. 

The Tories have deliberately tak- 
en a low profile, apart from the 
launch of their manifesto on Tues- 
day and various “photo-opportuni- 
ties” aimed at television bulletins, 
including a visit by Mrs Margaret 


Thatcher, to London's docklands 
yesterday to see her campaign bus, 
emblazoned with the slogan “Mov- 
ing Forward with Maggie." 

This m fl P'fag will thw 
first of the party's daily press con- 
ferences, where the party's new 
theme tune by composer Mr An- 
drew Lloyd Webber will be played, 
and she will then go on her first na- 
tional tour, over a week after the 
Alliance leaders. 

Mrs Thatcher argued yesterday 
that "three weeks is long enough 
-tor a campaign. I am always afraid 
people are going to get tired of poli- 
tics by polling day.” 

The Tories will now go strongly 
on the offensive, as was indicated in 
a forthright speech on defence last 
night by Mrs Thatcher at her adop- 
tion meeting as candidate for 
Finchley, north London. 

Conservative strategists are re- 
laxed about the slight firming of the 
Labour postion since this is mainly 
at the expense of the Alliance 
which is now clearly in third place. 

A characteristic counter to the 
confidence of Conservative Central 
Office last night from Mr 

John Biffen, the leader of the 
House of Commons. He warned 
against complacency and said there 


were risks at present “Let there be 
no talk of having an im prpgn«hu 
lead in the polls, or of having an op- 
position neatly divided for the dura- 
tion df the Campaign." 

Mr Biffen said the Al *K*Hnn 
should be fought for just as if it 
were "the knife-edged contests of 
1984 and February 1974.” He said 
the result would be "a triumph of 
moderation and realism," adrfing 
that Tories rfi pplrf oat believe it 
was "all but won." 

Labour’s 16-strong campaign 
committee met in London last night 
to review progress, and particularly 
to consider the impact in the re- 
gional television and press of the 
tours by Mr Nell Kinnock. the party 
lead e r. They will also be watching 
closely to see the impact of the par- 
ty’s first election broadcast last 
night which concentrates on his 
personality. 

Party leaders are pleased that so 
far they have avoided the splits and 
gaffes of the 1983 campaign and 
that they have forced the favou- 
rable issues to Labour of unemploy- 
ment and the health service to the 
centre of the campaign. 

Alliance strategists are privately 
disappointed by the poll results af- 
ter their good showing 


Labour plans more tax changes 


BY OUR POLITICAL EDITOR 
THE LABOUR PARTY plans more 
extensive tax changes than specifi- 
ed in its election manifesto, al- 
though Mr Bryan Gould, Labour's 
campaign co-ordinator, stressed 
yesterday that the only people “who 
might expect to pay more tax would 
be those earning £500 a week or 
more” (£26,000 a year). 

The manifesto refers to reversing 
the "extra tax cuts which the ri- 
chest 5 per cent have received from 
the Tory Government and to other 
reforms of capital taxation. 

Labour spokesmen say other 
changes will involve the reintroduc- 


tion of the investment income sur- 
charge and a possible removal of 
the upper limit on employees' na- 
tional insurance contributions, 
which currently takes effect an 
parnings of around 05,000 a year, 
although this is not a firm proposaL 

One likely option is ending the 
exemption of investment or un- 
earned income from national insur- 
ance contributions. 

The party is also considering a 
series of changes in capital ta xation 

including a reversal of the easing of 

capital transfer tax introduced in 
stages wwee 1979. Despite a mani- 


festo commitment to a wealth far*, 
party leaders concede that the im- 
mediate revenue produced might be 
limited. 

Mr Gould said yesterday Labour 
would not produce detailed tax 
tables showing the nwpapt of its 
proposals since that would be im- 
possible to estimate until the party 
was in power. 

Labour believes it should have no 
difficulty raising the £3.6bn needed 
tor its anti-poverty programme 
since the bestaff 5 per cent have 
now received more than £4bn in tax 
reliefs since 1979. 


UK NEWS 

Industry’s capital 
investment shows 
no sign of increase 


BY JANET BUSH 
THERE ARE still no convincing 
signs that British industry is begin- 
ning to invest more, and capital ex- 
penditure droppe d in the first quar- 
ter of this year, according to provi- 
sional figures released yesterday by 

the Department of Trade and In- 
dustry. 

Capital expenditure by the manu- 
facturing, construction, distribution 
and financial industries totalled 
£4.7 lbn in the first three months of 
the year, nearly 1 per cent below 
the previous quarter and just over 3 
per cent below the first quarter of 
1986. The value of expenditure is 
seasonally adjusted at 1980 prices. 

The Government said in its bud- 
get report that the prospects are tor 
investment to grow rapidly this 
year. The report pointed to a DTI 
survey of investment intentions in 
December which suggested growth 
in non-North Sea business invest- 
ment of about 6 per cent year, 
continuing into 1988. 

Yesterday’s figures showed some 
pick-up in manufac t urin g invest- 
ment since the end of the last year 
and investment f nebwfof lyyg n d as- 
sets was 5 per cent higher in the 
first quarter than the previous 
quarter. However, it was still nearly 
8 per cent tower than the first quar- 
ter m 

The comparison with the first 
quarter last year has to take into 
account the high level of invest- 
ment in the first few months of last 


capital allowances in ApriL 

The volume of in- 

vestment (including leased assets) 
in the last 12 months was S per Cent 
loner than is the preceding 12- 
month period. Within tins, invest- 
ment on individual assets increased 
by nearly 3 per cent tor new build- 
ing work but decreased by almost 
11 pre cent for vehicles and by 7 per 
cent for phint f nd machinery. 

The DTTs provisional estimate 
tor investment by the constr u ction, 
rii^trihntinn *nA financ ia l indus- 
tries in the first quarter was 
£3.07hn. 3% per cent lower than in 
the preceding quarter and 54 per 
cent low er than m tbe first quarter 
of 1988. 

Separate provisional figures re- 
leased yesterday showed that the 
level t;f stocks held by manufactur- 
ers. who l es al ers and refcukrc rose 

by ElMm it) 

of 1980 prices. 

Wi thin this, nttmifa'iiir tin. 1 

stocks rose by about QtKkn follow- 
mg d estocking by almost £350m 
dining 1886. During the fee quar- 
ter, wholesalers' stocks rose by 
about £S5m after a rise in the whole 
of last year df£75m. 

The level of retailers’ stocks fa 
the first quarter of 1987 a p p e ar ed to 
be roughly the same as in the previ- 
ous quarter after seven successive 
quarters of stockbrnlding, according 
to the figures. 


Barclays union threat 
to Connect debit card 

BY JOHN QAPPER, LABOUR STAFF 

BARCLAYS BANK faces further junction to stop the action taking 
problems with its already troubled plaoe. 

Mr Eddie Gale, general secretary 
of the Barclays Group Staff Union, 
said that he believed the action over 
tire pay offer imposed on 150,000 
staff in three major clearing banks 


Connect direct debit card from 
40,000 staff who have balloted in fa- 
vour of not co-operating with the 
card’s launch and operation. 
Members of the bank’s staff 


NOTICE OF REDEMPTION . 
lo the Holders of 

Compama Anonima National 
Telefonos de Venezuela 

854% Guaranteed Sinking Fraid Debentures Due 1987 

NOTICE IS HLttEBY GIVEN that, pursuant to the provisions of the Fiscal Agency A g reeme nt 
dated as of December 15, 1972, providing for the above Debentures, 8740,000 principal amount 
of said Debentures bearing the following serial numbers have been selected for redemption cm 
lone 15, 1987. through operation of the Sinking Fund, at tbe principal amount thereof together 
with accrued interest thereon to said date; 

OUTSTANDING DEBENTURES OF 81,000 EACH OF PREFIX “H" BEARING TBE 
DISTINCTIVE NUMBERS ENDING IN ANY OF THE FOLLOWING TWO DIGITSz 


04 


08 


13 


44 


49 


63 


13908 
14008 
Ml 06 
14200 
14306 
14506 
14806 


ALSO OUTSTANDING DEBENTURES OF *1,000 EACH OF PREFIX "M" 

HEARINC THE FOLLOWING NUMBERS: 

4 806 3006 4506 5906 7106 8306 9206 11006 12806 

6 1006 3106 4706 6006 7306 8406 9406 11106 13006 

8 1206 3706 4808 6106 7406 8506 9606 11206 13106 

106 1506 3806 5006 6306 7506 8606 9706 11306 13206 

206 1906 3906 5106 6406 7606 8706 10008 12108 13S06 

306 2006 4106 5306 6506 7906 8906 10306 12206 13406 

606 2106 4306 5506 6906 8006 9006 10606 12408 13606 

706 2606 4406 5606 7006 8206 9106 10906 12806 13706 

On June 15, 1987, the Debentures de signa t ed above wiH become due and payable in such 
coin or currency of tbe United States of America as at the time of payment shall be kgal tender for 
the payment of public and private debts. Said Debentures will be paid, upon pr esentation and sur- 
render thereof with all coupons appertaining thereto maturing after the redemption date, at the 
option of the bolder either (a) at tbe corporate trust office of Morgan Guaranty That Company 
of New York, 13 lb Floor; 30 West Broadway, New York, M 10015, or (b) at die main offices 
of any of tbe following: Morgan Guaranty Trust Company of New Yore in Brussels, Frankfort am 
Main, London, Paris and Zurich; Bank Mees & Hope NV in Amsterdam; Credito Romagnolo 
S.p-A. in Milan and Rome and Credit Industrie! d 'Alsace et de Lorraine, SA. in Luxembourg. 
Payments at the offices referred to in (b) above will be made by check drawn on a dollar account, 
or by transfer to a dollar account maintai n ed by tbe payee with a bank in New York City. Payments 
at toe office of any paying agent outride of the United States will be made by check drawn on, 
or transfer to a United Slates dollar account with, a bank in tbe Borough of Manhattan, City 
and State of New York. Any payment made by transfer to an account maintained by the payee 
with a bank in the United States may be subject to reportingto the United States Internal Revenue 
Service (IRS) and to backup withholding at a rale of 20% if payees not recognized aa exempt 
recipients foil to provide the paying agent with an executed IRS Form W-8, certifying under 

i or an executed IRS Farm W-9, 
uion number ( employer IdenH- 
: security number; as appropriated Those holders trim are required to 
provide their correct taxpayer identification number on Internal Revenue Service Form W-9 and 
who fail to do so may also be subject to a penalty df 850. Please therefore provide the appropriate 
certification when presenting your securities for payment. 

Coupons due June 15, 1987 should be detached and collected in tbe usual manner. 

On and after June 15, 1987, interest shall cease to accrue on the Debentures herein designated 

for redemption. 

Compafiia Andnima Nacionai Tel6£onos de Venezuela 

Dated: May 15, 1987 


tmion voted, by just ifce 60 per cent would seriously disrupt Connects 
majority required,' to start indnstri- introduction, 
d action <m June l ever the impost- Mr Gale said that although the 

turn (rf a 5 per cent^y award, scheme was largely computerised, 
card is £ be launched publicly two most pnrchasT^d^rooHat 

^^toUowstritidsmbyre- to be processed by 


toilers of the bank's intention to 
charge a foe of 2 per cent an the 
cost af each purchase using Con- 
nect, the first of a generation of 
cards expected to pave the way to 
iiiithipw shopping. 

The bank union's ex e c u ti v e com- 
mittee decided on Tuesday that 
non-co-operation and an overtime 
ban wOl go wfouwi unless negotia- 
tions an toe pay award imposed by 
the Federation of Clearing Banks in 
April are resumed. 

The union said yesterday that the 
bank had to tarn questioned tfie le- 
gality df the ballot, which was can 1 


members of the tminn who com- 
prise about half of total staff at Bar- * 
clays’ 2,850 branches. 

A ballot of 40,661 membefs of the 
union held last Thursday produced 
a majority of flfLBl per cent in for 
vourttf actum Of the 18 £29 who vot- 
ed on the question. Barclays would 
not comment on the prospect of dis- 
ruption. 

Mr Nick Cowan, director of toe I 
federation, said yesterday that* 
there was "absolutely no prospecT. 


Ladbroke 
fails to 
win Extel 
injunction 

tty Clay Harris 

LADBROKE. the betting, fiqtefc 
and retafltag group, yesterday 
failed to win an interim Injunction 
in the Hi gh Court In London pfe- 
i m irf i wg j&ttrt, the financial and 
sport information c om pany from 
rifcmTrriTutffn g certain specified ru- 
mours about it. 

Mr Instate Leggatt; who beard ar- 
guments in chambers, said that 
Ladbroke had "failed to show that 
there is any evidence capable of 
supporting toe allegation that Extel 
was the author of tbe rumours.” 
Corts were awarded to ExteL 

Ladbroke, however, claimed a 
moral victory. It noted that the 
judge had "made it dear that at no 
time in the course of the proceed- 
ings was there arty suggestion that 
the rumours winch form foe compa- 
ny's complaint had Any foundation 
in fact whatsoever.” 

ladbroke issued toe writ on May 
8 after a flood of rumours ted to 
sharp foils in its share price, at one 
paint reducing market capitalisa- 
tion by IB per cent The Lo ndon 
Stock Exchange is proceeding with 
an inquiry, ianwriuwi at Ladbroke’s 
request, ioto share dealings at that 
time. 

Extel was especially concerned 
about the allegation that it bad sug- 
gested that Ladbroke was improp- 
erly using Satellite Information 
Services (SIS) to further its own fi- 
nancial interests and that Extel had 
caused the Office Of Fair Trading 
investigation into SIS. 

The judge said that tins daim 
was "not worth the paper it was 
wri tten on," Extol said yesterday 
ExteFs own audio and time service. 
Ladbroke is the stogie largest 
shareholder to SIS, and fite parent 
groups of Britain’s other hugest 
bookmakers also have major 
stakes. 

SIS, which earfier tote month te- 
gartive tefaoaatt of race mattings to 
batting shops, competes with 
"The decision fully vindicates Ex- 
tel and upholds had re info rces oar 
reputation for 1 integr i ty ahd impar- 
tiality,” Mr Alan Brooker, chairman 
and chief executive, said yesterday. 


Spending increase 
urged to remove 
inner-city decay 


BY HAZEL DUFFY 1 

A MASSIVE tocrewe lft sporfat 

cm the renew*! of toner oties. to b* 
managed hr«* tgtetty specialty 
created for tin p w * w , F** 
posed by the Royal tetituttan « 
British Axdntotfe to * report pub- 
lished yesterday. 

The toKterttaoft cdmmfttea on to- 
ner dties, set up at tfie tnuttetfan of 
Prison Charles to May 1988. says 
that tonejsxfty decay is one of 
most serious crises confr onting 
Britain today. 

The report says this scale of de* 
privation and decay is foadaquatety 
addressed by g o v er nm ent efforts, 
which are criticised tor thetr fear 
mooted and bureaucratic approach. 
It recommends a National Urban 
Renewal Agency be art up to pro- 
vide a dear strategy ted ergantoa* 
tional structure which would enable 
co-ordinated action to take placet. 

The agency would need substan- 
tial funds from government 
Around Elba annually is raoom- 
tbfeur- 


o£ fotty marketable tw ***& 
revetuM Banda, BM Jteioal Sato 
tegsCirtiftote*- 
Beads wou ld havt to be <«ar «fr 

invertoct, and the other, witoatoe^ 

erootipon, tor tavastotttegeci to » 
variety « marginal to* ntm» 

The itwttortko proposed that the 
uidWreej 


ban programme, — 

aged by the Environment Depart- 
ment, which would be ha nded over 
to the agency. 

This would act as a catalyst to §8* 
tract private funds tote&tog 19 to » 
£5ba annual programme. The main, 
avenue to the private sector would 
be through the issue by the agency 


agency, wtochwouM 
to the Ettvtomwnt Smttsuy, 
should operate to ptetteMW* wife 
consortia vvpro — i ritog heal author- 
ttfce*. private developers, industry 
and eooMHtafty Intonate . St wcbU 
also take awrxropouafoffity for tbe 
six urban development corporation* 
in Sogtead 

Zb atox would be to M-ofltinate 
add cuttaHtt on the mwte n ws to- 
cal Wtetiwa. whether groups of to- 
dMtfosla or agendas, mtber than 

tn«M— in* *' ti'inw * the ote 

tre, New housing; roftubtohment at 
extottog boating, rog e ima t to g dcr- 

riidlaodijQhcroattonesBcim.to- 
dutiftte tratetog fociiWe*. would ba 
' in. the agency's *pw 


wmddbtedow! 

ton* to developers and nonprofit- 
mritfay bed h fldfoa. guaranteeing 
loans; safcsMtefeag interest sod IfcHi* 

gating equity investments. 


Lenders urged to set up 
central debt register 


BY HUQO DtiCOfi 

MR Robin Leigh-Fembarton, 
Governor of the Bank of Sagtead, 
yesterday encouraged building so- 
cieties to feed financial information 
about their borrowers total a centr al 
debt register. 

He said that this would Mfeoa 
the chances Of bid ddbtt at A time 
when consumer borrowing vMa 

ties Association's annual eonfor- 
ence in Harrogate; Mr LetyMtoa- 
bertoa also appeared to araport so- 
cieties to the& effort to tocroaa* 
their accett to vtoOttiOs ftoanflal 

markets. 


no Has at n eattfrnZfMtf debt 
register, which lenders could con- 
fatt to check On a potential borrow- 
er's obligation! to other tenders, 
has gathered pace to recant 
mahtito Banka, ted by Barclays, are 
fliiwiriwg of p"**tog Information 
about their borrowers into such a 


MrLB igl hPe mh artO ft iiidhowtfc 
waned this initiative by the banka 
gtd hoped buflfing aodettes noted 
also take part in it. 

Ob Wednesday, the association 
said it would be asking the Gavera- 
mrot to increase the limit on wbote- 
sate funding, 


rj 


of an increase In toe pay award to* 
members of the staff unions of Bai> 
days, National Westminster and 
ducted at the end of last week, and Lloyds, which together form the 
Indicated that it might seek an in- Clearing Banks Union. 


Jobs boost at Unigate 


. BY IAN HAMILTON FAZEY 

UNIGATE, foe foods grotty, is to ex- 
pand its poultry rearing and pto 
cessing business with a £55m com- 
plex Of new ririrJnm farnm an/i fac- 
tories centred on Sc untho rpe in 
south Humberside, north-east Eng- 
land. 

Steel closures caused file loss of 
104)00 jobs in the area during tbe 
rec ess ion nnrf nnempfo ymant te sti ff 
at 17.8 per cent 

About L200 new jobs will be in- 
volved and the project is the biggest 
proposal for organic g rowt h ever 
undertaken by Unigate. which has 
so for been expanding its poultry 
business by acquisition, notably 
through the purchase of Hunnhiirs 
Country Produce. Exports to Eu- 
rope are expected to provide a sub- 
stantial part iff the business. 

The new facilities will trade as 
Turners CHiofcons will join 
Turners Turkeys of Spalding , Lin- 
colnshire, as part of the recently 


formed Poultry. The other 

core bus i ness e s of toe subsidiary 
are ThomhflFs and the Shropshire- 
based poultry business, J. P. Wood. 

More than 850 of tfie jobs will be 
in a new processing factory to be 
built at Scunthorpe. _ 

Unigate's expansion in poultry 
follows the growing popularity of 
chicken, which toe company says 
has just outstripped beef for tbe 
first time in the UK. Demand for 

white meat is growing at an annual 
5 per cent, with toe market now at 
560m birds a year. To satisfy de- 
mand, imports take about 12 per 
cent of the market 
Despite top?r profitability, Un- 
igate Is also seffing its five engi- 
neering businesses to 
resources on its faster-expanding 


Invest-Loan 

Jyske Bank offers you the possibility of greatly 
increasing the return on your capital 

An Invest-Loan is the latest form of investment which gives 
you even more possibilities for investment on the internatio- 
nal markets. 

The advantages are obvious: Ibu borrow 4 times the 
amount which you have invested in an "Invest -Loan” _ 
and the total amount is then invested in foreign securities or 
deposited hi a bank account. 

Jyske Bank’s Invest-Loan enables investment in toe best 
quoted securities, or bank accounts, so that yon obtain the 
highest return of the market. 

It is a question of mutual confidence - on favourable terms. 
Of coune there is a reason why so many people; during the past 
20 years, have obtained a steady return - with Jyske Bank taking 
the ini tali vc. 

Trice a step towards an Invest-Loan - start with the coupon. 
Please return the coupon today for further information. 



Name 


Address 


Postal Code 


I 

| Country 



IVCI/X JyskBank, 

1 I J iX r. Private Clients Department, 
H A VII/ ^Kterbrogade 9, 

BANK 

Bank of Jutland til +45 1 21 22 22 




core activities of food, dtebibution 

Mid transport, o+hrhftiiyn S6T- 

vices and display equipment. 

The last two of these a repart of 
Unigate’s Gflfcspur division, from 
which three of the engineering 
bu a &iesses wfil now be shed. Tbe 
other engineering companies are 
part of Unigate’s Wfccaton division, 
which is chiefly concerned with 
transport 


THE STRONG; SH-ENT TYPE 

SILVER REED EZ45 

THE HEAVY iXTlYim-ODSTANSWERW 
VCRJROFHGB'VVQRKLQAD 








v .* • * •>•*>*• 

. - :>v c \ i-O'.-.-v' . 

•'V ^ 


AFTER THE “BIO BANG 1 * YOU'U. APPRECIATE A 

LifYLfe qUieT in your office. Something 
eFfWienT, aocuKpte, Thoroughly 
reliable - Above all peacefully 
cost-effective. Silver Reed’s Etas 
office typewriter is just that, it is a 
HEAVY DUTY OFFICE TYPEWRITER PACKED 
WITH PErtruftES AND UTILISING A NEW 
LONG LIFE RIBBON GIVING 2SOX 
CHARACTERS OF TYPE. 

ECONOMICALLY PRICED AND QUIET 
IN OPERATION IT WON’T DISTURB YOU 
OR VoijR sUbdEY. AND IT HAS THE 
ADDED BONUS OF KING MADE IN 

The uk. no wonder Silver reed 

SELL MORE TYPEWRITERS IN THE 
UK THAN ANYONE ELSE, 




SILVER REED 


Am Bob ItncMMTioNAutCUJ'Oru In. 
nwcN acme house; Exchanos Rmix VW ot om o . Hnw roiWMiire wn in. 

Tin^WxrFOMO (0923) 33016. TELXKS2302S(*lumai KftCBlMlLXi (OSH) SHU ■ 


u 



Westminster 
Bank PLC 


NatWest announces that 
with effect from 
Monday, 1st June, 198? 
its Branch Standard Rate 
is decreased from 
25% to 24% p.a. 

(Branch Standard Rate is charged on borrowings arising 
without arrangement Any such borrowing* regulated by 
the Consumer Credit Act 1974 are also varied accordingly.) 

41 Lothbury London EC2P 2BP 


Established Licensed Deposit 
Taking institution is seeking 
to purchase portfolios of 
unsecured and secured loans, 
including credit cards. 

CONTACT: 

PHIUPODONOGHUe RCA. 

CORPORATE BUSINESS MANAQSL 


Trust & Savings 


The friendty face erf money 




I 



-IV 


Financial Times Friday May 22 1987 


IF COMPUTERS CAN’T TALK TO EACH OTHER 

HOW CAN THEY WORK TOGETHER? 


It’s next to impossible to co-ordinate 
anything when the left computer doesn’t 
know what the right computer’s doing. 

And if computers aren’t making the 
entire operation run more efficiently then 
it defeats the purpose of having them in 
the first place. 

Honeywell Bull can get virtually any 
computer talking to any other computer. 


In fact we are now producing the 
most compatible computers you can buy, 
making us the leading computer company 
in networking. 

But we’re not all talk. 

Governments worldwide choose our 
ISO (International Standards Organisation) 
systems, and in SNA (Systems 
Network Architecture) we’re 


responsible for the largest multi-vendor 
network in the world. 

Honeywell Bull is jointly owned by 
Honeywell Inc., Groupe Bull and NEC. 

If you’d like to know more about one 
of the most comprehensive systems in 
the world, ring our Information Desk on 
01-568 9191 and talk to us. 

It beats talking to yourself. 




igmt 


?«» 


f r * 










■V 


/ 


'l 


m 


*• 




3* 


s? * 




m 


* *?< 




df i 


















h 




■ v 


r 


■K £ : tr 




i l r ■ 


fy ' 


# 


f ? 






“ t. 




V 






c 


V- 



DESIGNED WEII 


BUILT WEll 


HONEYWELL BULL 


Q 9 


HO^WZIiBUIiUMrrED,WKEYWnJ.HOC5tCaiXr WEST ROAD, SRE>TTORD,MIDDr£SXTW-89Da. TELEPHONE: Ca-568 MM- i 





8 








Financial Timas F^feUy M&Y 22 1887 


Nissan 
drops 
van built 
in Spain 

By Kenneth Gooding 

THE IMPORTER of Nissan vehi- 
cles to the US has stopped distri- 
buting the Trade van built in Spain 
by the Japanese group. 

Instead, the independently 
owned Nissan UK will concentrate 
on selling the Urvan van which is 
imported from Japan. 

Since the Trade van, made by 
Motor Iberica, Nissan's loss- making 
Spanish subsidiary, went on sale in 
the UK at the end of 1985 about 970 
have been registered. More than 
100 are in stock and still to be sold. 

Nissan UK said yesterday It bad 
decided to rationalise the commer- 
cial vehicle range offered through 
its dealers because competition had 
become so fierce. 

The Trade and Urvan vehicles 
had approximately the same carry- 
ing capacity but the latter was a 
better-looking vehicle and shortly 
due to be improved by a major 
“face-hft" 

Last year Nissan sold 1,900 Ur- 
vans in the UK. It will continue to 
import all the four-wheel-drive Pa- 
trol vehicles for the UK from Motor 
Iberica in Spain. 



UK NEWS 

Hazel Duffy looks at the flow of cash support from Whitehall to industry 

Advisers raise stakes in the grants business 


HOW MUCH did you get from the 
Government last year? runs the 
opening line of an advertising bro- 
chure which dropped recently on 
thousands of managers’ d*K;ks. 

The answer for Rio Tinto-Zinc 
was £25ra. That was the Govern- 
ment funding package extended to 
the group, to modernise uneconom- 
ic tin mines in Cornwall in south- 
west England. RTZ employed Eu- 
rofi consultants to help put its case 
to Whitehall. The consultancy is 
one of a number offering specialist 
advice to companies on Govern- 
ment European Community 
grants. 

Grants are big business. Depart- 
ment of Trade and Industry (DTI) 
grants alone exceeded £500,000 last 
year. Then there are grants for 
training, special grants for develop- 
ments in the inner cities, grants 
from tiie development agencies in 
Scotland, Wales, Northern Ireland, 
local authority hand-outs, and Euro- 
pean Community funds. 

Total amounts paid over to busi- 
ness by Whitehall, however, are de- 
clining. Few schemes now offer au- 
tomatic entitle ment to grants. It is 
very much up to the company to 
convince Whitehall that its project 
qualifies. Many schemes are based 
on the premise that assistance is 
forthcoming only if the project 
would not otherwise go a head. 

An application at present before 


the Government is from Lucas Elec- 
trical, part of the Lucas group, 
which wants assistance to save its 
car instrument factory at Ystrad- 
gynlais. South Wales. 

The plan is to transfer production 
to Wales of automotive wiring har- 
nesses from plants in other parts of 
the country which are up against 
capacity constraints, thereby keep- 
ing open a factory which Lucas had. 
planned to dose. 

Lucas' case to the Government 
and local agencies is that the plan is 
viable only with help from the pub- 
lic sector. That is for Whitehall to 
decide. Officials must be satisfied 
that, in case, jobs are not sim- 
ply being shifted from non-assisted 
areas to a place where aid can be 
had. They will also be keen to grant 
only tbe ™ im mum necessary to en- 
able the project to go ahead. 

Lucas likes to negotiate direct 
with the Government, but compa- 
nies not frwiiliw with procedures 
may find it difficult Knowing what 
is on offer can be confusing. The 
grants scene is complex. Some 
schemes are flexible, others much 
more rigid. 

"A lot of companies do not under- 
stand what is around,” says Mr Al- 
an Ferry, who joined the accoun- 
tants Ernst & Whinney from the 
Treasury last year to run a grants 
service. “Some big companies are 
very chied up. But arrangements 


STATE AID TO INDUSTRY 


SOO 


Em 


300 































aail 


can be very patchy in other compa- 
nies, particularly where responsibil- 
ity is delegated to subsuitferies and 
branches." 

This is where the consultant ran 
come in. They will give their opin- 
ion on whether the cmnpany will 
qualify; draw up the proposal to go 
to the Government and, if neces- 
sary, negotiate with officials. 

They will also advise clients to in- 
dude an assessment of Govern- 
ment assistance when running 
through budgets and plans, and per- 
haps tailor projects around aid rath- 
er than the other way. 

The specialists do not like to be 
seen as doing battle with. Whitehall 


departments. Tt is not oor intention 

to try to poll a fast one over the DTI 

but to make the whole process go 
more smoothly," says Mr Tim Lina* 
ere, of the accountants, Delo itte . 

They emphasise the importance 
ctf the proposal being drawn up in a 
way that officials can readily get to 
work on, so that the critical time 


can be managed. 

In the ’R m t irn gh*™ area, the DTI 
has a pilot project where proposals 
are put out to accountancy firms to 
be assessed, so it can be argued 
there is a certain logic to those pro- 
posals being drawn up by such 
firms. 


There couJd be a drawback with 
this Increasing VofasskmaHsa* 
tion"of the gj aatt process, bywfati’ 
miring contact between offi ci a l * 
and companies and ma k i ng tbe 
whole exercise more J^thstic. 

Whitehall points oat that the 
quality of consultants is not uni- 
form. Some are said to charge their 

dfrmfec a p er ce n t a ge of the grant 
which they get from Government, 
although most charge a fee accord- 
ing to time spent on the project 

Despite these qualifications, the 
consultants' stake In tbe grants 
business is likely to grow. Many 
companies do not have the exper- 
tise and persistence simply to find 
out what is on offer, particularly if 
it means obtaining information 
from more one Whitehall de- 
partment 

Meanwhile, Whitehall, rightly vi- 
gilant of tbe public purse, tries ever 
harder to meet its obl ig ations to 
business at minimum cost The re- 
cent report from the National Audit 
Office, the parliamentary watchdog, 
suggested that the Government had 
paid out more in the past than was 
necessary. 

Procedures have been tightened 
but there was still room for im- 
provement, the report said. It prob- 
ably "wtwc more work for the spe- 
cialists- 


conditions labelled 
a public scandal 


BY KONA MoUMN 

SHODDY bocWng cooditimw of hol- 
iday tour ope rate s are causing a 
public anuyfri, acearding to the edi- 
tor of cxjniWDtx magudnn Holiday 
Which? 

Mr Jonathan Shephard accused 
travel firms of shoddy contractual 
standards v&hbookfog conffit tew 
which were "la highly auo rewftd 
confidence trick." His magazine 
had bulging fifes of hoHdaaroaker* 
about alterations to 


in Manchester. Mr Shephard said 
tfeit conditions were full of 

dotfotMorimenfotmWewecluwon 

rlmiiaa "which can eon the public 
into setiHag for fen than fhtirtegal 
rights.'' He said the amount of com- 
pensation offered was "derisory” 


made by operators after 
and payment had been settled. 

"It is a public scandal that holi- 
daymakers in one of their main 
purchases of the year, can ham 
their care and forethought defeated 
by tbe action of « tour operator” 

Addressing a young lawyer* in- 
ternational association conference 


A menirun m 

of British Ttavel Agents, which rep- 
leiiijti more than 550 tour opera- 
tors, described Mr Shapharf* re- 
marks as "mischievous tom inaccu- 
rate." and called for them to be 
withdrawn. 

Official figures on holiday com- 
waskrar compared to other 
fo 1983. there were just 
23 complaints per tlm spent com- 
pared with » per llm spent on 
boanhoU Te a po ts, saU the 

spokesman. 


Surplus ‘spells bargains’ 




“rrr 


S- v :V; <•■■■■ 


xii." ... :.'■■■■ ■■ ■ 'i 

; V =! "V 7 ^ vl 


! » ' ^ 


MONDAY 

DEPART 

LONDON 

1930 ARRIVE 

TOKYO 

1510 

TUESDAY 

DEPART 

LONDON 

1930 ARRIVE 

TOKYO 

1510 

WEDNESDAY 

DEPART 

LONDON 

1930 ARRIVE 

TOKYO 

1510 

FRIDAY 

DEPART 

PARIS 

2040 ARRIVE 

TOKYO 

1525 

SATURDAY 

DEPART 

LONDON 

1930 ARRIVE 

TOKYO 

1510 

SUNDAY 

DEPART 

PARIS 

2040 ARRIVE 

TOKYO 

1525 

SCHEDULE EFFECTIVE 

FROM JUNE 1st. EVENING DEPARTURE 

TIMES ALLOW EASY CONNECTIONS FROM OTHER EUROPEAN CITIES 


«■: -V.-vPi - . i r v !*$?& 
■■ . •' J 

."vv. 

. <• i. 





E^3 








mkgst 


,'S;- 




.. .>$?*■ 



, V 

•V. ! 









a'#:*?® 



-;.=1 

% 


£' k "* -I . 




s'; 



m 




bt t 






' ” 1 0*v; ^ 





8^ r>>- , . • 

4 V r- 

&M, 





.:zS0, 



J- w 

Vl ! 


%3r#& 






<MAAM AIR LINES 

EVERYTHING YOU EXPECT AND MORE. 


RNANCIAL TWES REPORTER 

A SURPLUS of package holidays 
gtin wremid means last-minute ho- 
lidaymakers could snap up some 
reel bargains over the next few 
miwrtVt*, aec a rffaig to Thomas Cook, 
the travel agency. 

From its survey of the package 
tour industry, the company reports 
that there are still 3a summer noti- 

days available, many of then keen- 
ly priced. 

Mr John McEwas, Cook's manag- 
ing director, said: “I think some « 
tbe tour operators over-read foe 
likely 1987 summer market when 
they planned their brochures tost 
year and now thereto a mounta in of 
surplus holidays. 

He raid that some tour oper at ors, 
keen to shift extra sate, were 
"shifting their spare holidays by of- 


fering bargains which poetpcnc the 
allocation of hotels until the client 
reaches the resort, leaving borgam- 
busttre very much to the dark 
about tire final details of their holi- 
day location and accommodation." 

However, there were plenty of 
keenly priced package holidays 
available which people could book 
with confidence, he said, although 
many of tbe popular resorts were 
beavhy booked at peak season in 
m&JuIy and August 

Etampte of late availability holi- 
days include: a seven-night apart- 
ment holiday from Glasgow to Cor- 
fu with Horizon for C79, or with the 
rarne (mentor, flying from Gatvrick 
to Corfu, a seven-night bed and 
breakfast hotel holiday on Ibiza for 
€89. 


Tip offs to Next 
Major Upswings 


Evoty big N«w York slid* it a Krawn for informed accumulation 
In next areas of bulDsh emphasis. Deflationary agricultural priest 
knodcod oat » many farmers that high-tsch business centres 
needing tom of cotton hi wall and floor coverings are rising over 
yesterday^ cotton fields. A' natural readjustment factor reviewed 
tit the newest Indigo ** Discovery ~ report drives cotton up with 
other commodities and the public runt out of Rnanclal-euet 
blue chip* that were peaking last winter. Philip Morris has 
lost $10 since April: but Hewlett Packard In problem-solving 
technology has gained *10. Gold’s cyclical resurgence generates 
further flmndaf-enet liquidation: but Stratys Computer climbs 
more rapidly than go M-p reducing Homcstake. 

Cost/c ffldency specialises boom again when consumer-level 
majors need profit-margin help. Related technologies soak up 
precious metals. Indigo has been covering this tidal turn for 
more than two yean: and reports are available with our 
compliments. 

Tel; 


Indigo 


34-52-389600 
Telex 79423 


INVESTMENT SA. 

Avda. Palma de Mallorca 43, 

Torremolinoj (Malaga) Spain 

Dear Sirs: Without cost or obligation to me, please begin sending 
your weekly “ Discovery ” reports with their recommendations 
and projections involving the growth-generating power of reflation. 

ADDRESS , 


TELEPHONE: Buetoeee 

TeUx 


Homo..... 




ROTHSCHILD BANK AG 
ZORICH 

Portfolio Management 

Trustee Services 

Zollikefst raise KH e034ZQnch Telephone 0 V 3 M flu 

P o a™ WWSWnZEALANO 1C I ) LTD. 

P.O.Box 330 Sarma House. St. Patar Port. Gumm» 




Geneva Office 
_ EQUTTASSA 

30 du BMne. ian Geneva 11. Telephone 002/281 833 


Hono Kong Far East Repiesentahva Office 

^ ROTHSCHILD BANK AG 

W Connaught Centm. Hong Kong. Tela phone 0&EK333 


r> 




9 






o 











P* ®T s < 




<?-G 


fp 

\ 

<t 

\ 


o-a 


c-e 

? 

© 

'4 

c c* 


Though the substances shown here constitute 
the human body, nothing could be further from a living, breathing, 
vibrant human being. So, if this is all that someone saw in you, 

wouldn’t you be a trifle upset? 

At Shell Chemicals, we want you to want us for more than just 

our chemicals. But if we’re not simply talking chemicals, what are we 
talking about? 


We’re talking about your real business needs and our ability to 
fulfil them, about where your business is going and how we can help 
you to get there, about new areas of research and development, about 
improving quality and efficiency, about the weather. 

We’re changing. We’re talking people. Drop us a line and find 
out what we’re made of. 

SHELL CHEMICALS UK LTD, 1 NORTHUMBERLAND AVENUE, LONDON WC2N 5 LA. 


ARE THESE CHEMICALS ALL WE BOIL DOWN TO? 


10 


financial Times Friday May 22 1987 


UK NEWS - THE GENERAL ELECTION 



Alliance leaders 
see hope for 
deal on defence 


BY IYOR OWEN AND TOM LYNCH 


David Owen: no change in 
strategy 

Alliance 
unshaken 
by polls 

By Tom Lynch, Philip Rawrtome 

and Ivor Owen 

THE POOR Alliance showing in 
the polls would not force a 
change in campaign strategy, Mr 
David Steel, the Liberal leader, 
said yesterday. 

Dr David Owen, leader of the 
Social Democrats, also refused 
to accept that the apparent slip 
in Alliance support meant a 
change in campaign strategy 
was required, with more em- 
phasis being placed on attacking 
the Labour Party. 

Mr Steel said that the 
Alliance's rating had slipped as 
low as 14 per cent during the 
1983 campaign, recovering to 26 
per cent in the election. 

He said the parties had come 
through with a late surge in 
that election and at all their 
by-election successes since then. 
The Alliance would stick to 
attacking Labour in its strong 
areas and concentrating its 
national campaign on stopping 
the reflection of the Conser- 
vatives. 

lu Liverpool last night Hr 
Steel accused Mr Thatcher of 
mimicking the Militant Ten- 
dency. 

The Prime Minister’s insis- 
tence that she would not nego- 
tiate in a hung parliament he 
said. “ is exactly the attitude 
that has led Liverpool to the 
brink of ruin and the fact that 
it comes from the hard right 
rather than the hard left makes 
it no better.” 

“ We alone can check the 
folly of extremism on which the 
fanatics of far left and far 
fight flourish." he declared. 


LEADERS of the SDP-Liberal 
Alliance believe that they will 
be able to make the Conserva- 
tives an offer they cannot refuse 
if the Tories want to prevent 
a Labour minority administra- 
tion in a hong parliament: 

Alliance leaders argue that 
Labour's commitment to a non- 
nuclear defence policy puts 
Britain's security at risk and 
that they would be safeguarding 
the national interest if they 
offered to enter into a coalition 
with the Conservatives — the 
price of which would be con- 
sessions on proportional repre- 
sentation. 

This emerged yesterday after 
Dr Owen challenged the Tory 
and Labour leaders to a public 


defence commitments would 
be needed to ensure that com- 
mitments matched the re- 
sources available. Trident 
would be "top of the list for 
reconsideration.” 

Dr Owen has already ruled 
out any possibility of a deal with 
a non-nuclear Labour policy and 
yesterday Mr Beith said there 
was "no way” the Alliance 
would be party to an arrange- 
ment which left the UK with 
“ no foreseeable defence against 
nuclear blackmail." In a refer- 
ence to Tory policy, he also 
ruled ont a deal involving 
“ nuclear commitments that 
don’t add up.” 

Any deal involving the reten- 
tion of nuclear weapons would 


debate on defence while Mr present difficulties for Mr Steel. 


Alan Beith. the deputy Liberal 
leader, implied that the Alliance 
would have to be convinced of 
the cost-effectiveness of any 
post-election defence deal. 

Dr Owen bas exerted his 


who recognises that his party 
must accommodate those whose 
opposition to nuclear weapons 
stems from Quaker or other 
pacifist beliefs — he has little 
time for the CND activists 



AtMtr Atfnrootf 


ALL ABOARD MRS THATCHER’S PRIVATE BUS 


undoubted dominance in policy whose presence at Liberal 


formulation to ensure that the 
Alliance commitment to a mini- 
mum nuclear deterrent has 
been presented in terms which 
leave open the choice of 
weapons to replace Polaris. 

Mr John Cartwright, the 
Alliance defence spokesman, 
confirmed yesterday that the 
solution most likely to be 
favoured by the Alliance is 
the installation of cruise 
missiles on the hunter-killer 
submarines and on those now 
being built for Trident. How- 
ever, he and Mr David Steel, 


assemblies has caused him so 
much embarrassment in the 
past 

To sweeten the Trident pill, 
the Allian ce would insist on 
active steps to introduce propor- 
tions 1 representation — even if 
that meant the Conservatives 
replacing Mrs Thatcher as 
leader. The most likely 
mechanism would be an act of 
parliament followed by a refer- 
endum. 

Alliance leadership still 
smarting f ro m the Conservative 
manifesto charge that their de- 


the Liberal leader, were care- fence policy would lead to the 


ful to emphasise that it was 
not the job of an opposition to 
favour particular systems. 

tl seems that Alliance leaders 
would not be unduly surprise 
or alarmed if, during coalition 
negotiations with the Conserva- 
tives, they were presented with 
an assessment by the Chiefs 
of the Defence Staff showing 
that trimming the number of 
warheads carried by Trident 
was most likely to produce the 
least expensive and most effec- 
tive deterrent. 

Mr Cartwright said yesterday 
there was “ no argument for 
continuing with the Trident 
programme while we can 
replace it with a cheaper and 
more suitable minimum deter- 
rent" He argued that no 
matter who won the general 
election, a thorough review of 


unilateral abandonment of 
Britain’s nuclear weapons, and 
Dr Owen was asked at a press 
conference yesterday whether 
the accussation would make 
negotiations with Mrs Thatcher 
more difficult in the event of 
a hung parliament 
The SDP leader, who was 
accompanied on the platform by 
Mr Steel, Mr Cartwright and 
Mr Beith. replied that in view 

Mr Harvey Proctor as Conserva- 
tive candidate in Billericay, 


MRS THATCHER — backed 
by husband Denis — yesterday 
inspected her campaign battle 
bus painted true Tory, blue 
and boldly emblazoned with 
the slogan “ Forward with 
Maggie,” writes John Hunt 
The event took place tn the 
London Docklands develop- 
ment area dominated by 
newly con stru cted office 
bull dings and temples to 
advanced technology. 

The Prime Minister 
enthused about the dynamic 
growth in the area, describ- 
ing it as a "classic example 
of free enterprise and 
Toryism at work." 

In fact tiie London Dock- 
lands bad clearly been care- 

Gorman chosen 
for Billericay 

MRS TERESA GORMAN, a for- 


fuQy selected as an appro- 
priate backdrop for the 
television cameras. 

The television companies 
are said to have imposed a 
self-denying ordinance to 
avoid having their selection 
of election pictures dictated 
by the major parties. 

But there was not nodi 
sign of this yesterday at Mrs 
Thatcher disappeared behind 
a massive phalanx of televi- 
sion and newspaper camera- 
men. 

Naturally, the Prime 
Minister immediately placed 
herself in the driver's seat to 
try out the controls. The air- 
conditioned bus is a complex 
control centre containing two 
computers, a television 


screen and all mod-cons for 
the comfort of Mrs Thatcher 
and her staff. 

The glass is suspiciously 
thick but her staff declined 
to say whether tt was bullet- 
proof- “We have taken 
certain precautions,” said 


“ Could you raise your left 
hand?” asked one photo- 
grapher as she examined the 
exterior of the vehicle- 
“No, we go forward by the 
right.” replied Mrs Thatcher 
sternly. 

The Prime Minister said 
that she had not even seen 
that morning’s Gall up Poll in 
the Daily Telegraph which 
gave the Conservatives 42 per 
cent. Labour 33 per cent and 


Labour claims win 
over Tebbit 


of the Prime Minister’s insis- 
tence that she would not nego- 
tiate after the election, she _ 
should “negotiate or discuss or 
debate the question now. 

“I will debate with her at 


BY USA WOOD 


Mr Proctor resigned as the 
candidate last week and was 


THE LABOUR Party yesterday 
claimed it was completely 
justified in par&phaxsing com- 

any time thaTshe chooses 'what fined £1,450 on Wednesday after 

she calls the central issue of admitting charges of gross in- ^ Norman T^bti; 

this campaign — the defence decency. Conservative chai rm an, 

issue and nuclear deterrence. It Mrs Gorman will be defend- 
would be helpful if Mr Kin- ing a Conservative majority of 
nock would also oblige." 14,615. 



the 

during the 1983 general election 
campaign. 

The comments, used in a 
Labour Party press advertise- 
ment earlier this week, pro- 
voked an attack from Mr Teb- 
bit who denied using the words 
attributed to him. 


the Allian ce 23 per cent. How- 
ever, it was clear from her re- 
marks that she was worried 
fhaf the Conservative lead in 
the polls could lead to com- 
placency on the part of her 
supporters. 

“ Three weeks hi long 
enough for a campaign,” she 
said. “2 am always afraid 
people are going to get tired 
of politicians by polling 
day.” 

The party did look at 
opinion polls, she said, but 
the only one that mattered 
was when about 25m people 
went to the polls on June 11. 
The Conservatives would jest 
go on "ful steam ahead” put- 
ting their policies to the elec- 
torate regardless of polls, 

Howell unveils 
Labour plans 
for sport 

By Un Wood 

choice. If L*our 

unveiled the party’s programme 
for sport and leisure. 

The programme, the result of 
a 12-month study. Involved 
consultations with 289 national 
sports organisations. No other 
party, Mr Howell claimed, was 
producing such a comprehen- 
sive manifesto. - 
A first priority of a Labour 
government, he raid, would be 


could not produce evidence, he 
expected the party to pay £500 
to a charity of his own choice: 

Labour yesterday produced a 
tape of the interview, 
resurrected from its south 
London headquarters, and 
Maimed victory over Mr Tebbit. 

The radio intervieyfer had 
asked Mr . tebbit if in four or 
five years*' time, should the Con- 
servatives win, Mr Tebbit would 


Accortm* to the Labour 


advertisement Mr Tebbi said 
in a radio interview in 1963: 
‘If unemployment is not below 


had actually gone below 3m. 

Mr Tebbit had answered: “ If 
I did not think we oould do 


3m i nfive years, then Tm not that I don’t think we would be 
worth re-electing.” in a position to win the next 

Mr Tebbit wrote to Mr Kin- election.” 
nock challenging him to Mr Bryan Gould, Labour's 
produce a tape recording or campaign ao-ordin&tor, said yes- 
verified transcript He said terday: ‘ The statement we have 


that if Mr Kinnock could do 
so he would personally pay £500 
to a charity of the Labour 


attributed to him is exactly in 
line with the meaning of the 
words he said.” 


Unionists set to fight 


LEADERS of the Ulster Union- 
ists said yesterday that elected 
candidates would only go to par- 
liament to fight the Anglo-Irish 
agreement 


Mr James Molyneaux. leader 
of tiie Official Unionists wdd: 
“We seek election to parlia- 
ment with one aim only — to -use 
our membership to put right a 
great wrong done to Ulster.” 


playing fields and, by 
strengthening planning pro- 
cedures, to prevent football 
grounds from falling into the 
hands of financial speculators. 

A Labour government he 
said, would reduce football 
pool betting duty from 42} per 
cent to 40 per cent on condition 
that the promoters and the 
Football Trust used the £12m a 
year saved for the benefit of 
sport 

Labour odds shorten 

Ladbrokes yesterday shortened 
the odds on a Labour victory to 
4-1 from 6-1. Alliance odds have 
drifted to 66-1 from 33-1 and 
tiie Tories have eased to 1-7 
from 1-8. 


Communist 

Party 

launches 

manifesto 

m r ijudi 

THE COMMUNIST fvty 
yesterday pot * bray* 

brawn* struggles o* **£ 
past few years to launch its 
manifesto* 

The party’s troubles, which 
culminated atits iWScwv 
foresee with the victory of the 
Euro communist faction over 
ibe Moscow4e*auig hard-left 
grouping, ha* left the party 
with fewer than 16.000 mem- 
bers and without control of 
the Morning Star, the 
newspaper which has preached 
the party line in previous 
general elections. 

Another measure of the 
damage wrought by the intern*! 
feud Is that the party is field- 
ing only IB candidates, down 
from 34 last time. Yesterday. 
Mr Gordon McLennan, the 
party** general secretary, pre- 
sented tiie manifesto with great 
solemnity, flanked by five of 
those candidates, all trying not 
to look as if they expected to 
lose their deposits. 

There is also the slight elec- 
toral problem that the most 
famous advice recently given by 
one of their luminaries was 
Professor Eric Hobsbavrm’a 
recommendation of tactical 
voting to defear Mm Thatcher. 
The official line is that Com- 
munists who do not have the 
good fortune to live In a consti- 
tuency with a Communist can- 
didate should vote Labour. 

Mr McLennan accepted yester- 
day that some people would vote 
tactically in view of the 
country's voting system— the 
fact that the CP is a long-stand- 
: ing advocate of proportional 
repr e s en tation is one of 
Britain’s more obscure political 
farts. However, he said: “As 
a British political party enter- 
ing this election we consider 
that to advise that approach on 
a mass, all-British scale would 
be counter-productive.” 

He indignantly denied 
charges that Communists stand- 
ing in marginals such aa Green- 
wich would take votes away 
from Labour. The 16 consti- 
tuencies had been chosen on the 
basis of their record of Com- 
munist activity. “The partici- 
pation of Communists is a 
political question, not a mathe- 
matical question.” 

Mr McLennan said the advice 
to vote Labour where there was 
no Communist standing was 
given because of “the central 
necessity of ending eight years 
of Thatcher government,” and 
was in spite of major inade- 
quacies in Labour’s stance. 

He said Labour's pledge to 
cut unemployment by lm in two 
years was “a laudible but in- 
sufficient aim.” The target 
should be set higher, which 
would involve “more powerful 
action against big business and 
multinational corporations.” He 
was also critical of a clear com- 
mitment to repeal all union 
legislation. 

If Mr McLennan was in tunc 
with the Kremlin, there was no 
sign that he was praying for a 
Labour victory on the basis of 
defence policy. The scrapping 
of nuclear weapons was all very 
well in as far as It went but he 
did not accept thBt the motiva- 
tion should be to build up con- 
ventional forces in a more 
powerful contribution to Nato. 


Labour campaign on a new platform 


SOMEHOW IT would not seem 
right if the Labour committee 
rooms did not have the battle- 
scarred trestle tables (on loan 
from the Co-op), the wooden 
folding chairs mid the inky 
Roaeo duplicator. 

Sure enough, these time- 
honoured campaign essentials 
are aH present and correct at 
Labour’s election offices in 
Swindon, Wiltshire. But so, too, 
axe some gadgets . quite un- 
dreamt of in the days when 
the town’s railway workshops 
virtually ensured ■the regular 
return of a socialist MP. 

Not only is there an electric 
typewriter and photocopier, but 
there is even a computer that 
has already dealt with the once 
Herculean task of completing 
address labels for all 87,000 
voters in the constituency, the 
ninth-largest in the UK 

It may be a mixed blessing, 
as local labour agent Mr Jeff 
Walton admits. “We used to 
have dozens of people writing 
them and they used to love 
doing it in a way. But the time 
commitment was just so vast. 
Anyway, well still have them 
stuffing the envelopes.” 

Both in T unning tiie cam- 
paign and in planning it Labour 
accepts the need to adapt and 
change, if necessary, if it is to 
regain the Swindon seat ft lost 
to the Tories in 1983 in a result 
seen as reflective of the town’s 
Change. 

The nm-down of the railway 
workshops and the continued 
growth of high-tech industry 
has in the past four years 
accelerated the change. But Mr 
Walton believes that Swindon 
remains at heart a Labour town 
and that a sharper approach by 
a local party sin* doubled in 
Size will set the record straight 

So convinced is be that, at 
36, he has given up his job as 
a chemistry teacher to concen- 
trate on his work for the party 
and its Swindon candidate, Ms 
Gaye Johnston. 

“At this stage in my life I 



Jeff Walton: teacher turned political party ’agent"*** 


felt it was the right thing to 
do,” he says. “If we lose it 
means I go back to tea ching ; 
if we win, then with a bit of 
luck Gaye will have a bit of 
money to employ some help 
and She might choose me.** 

Mr Walton is typical of the 


David BrauDe looks 
at an agent’s role 
in a role-changing 
constituency 


spare-time agents who make up 
the overwhelming majority of 
Labour’s forces in tiie field. 
Although he quit teaching last 
Christmas, this week will be the 
first in which he has drawn a 
wage— probably £100, he thinks 
— depending on other campaign 
expenses. His wife Lesley, who 
works for a housing association, 
is herself a Labour activist and 
fully supports his decision to 


leave his job. They have no 
children. 

That Mr Walton can even 
consider taking a wage during 
the campaign Is probably 
thanks to NTJPE, the public 
workers' union, which Is spon- 
soring Ms Johnston and is thus 
helping the party to spend right 
up to its statutory limit for the 
constituency of almost £5,900. 

Not that the money is in tiie 
coffers yet. Collecting the funds 
and lia i s i ng with the party's 
hank (the Co-operative— “ very 
understanding,” says Mr Wal- 
ton) is one of the agent’s prime 
responsibilities. With the con- 
stituency party suspended 
during the campaign, tiie agent 
becomes the sole party official. 

In addition. Mr Walton has 
arranged insurance cover for 
any accidents that occur during 
tiie campaign and. by Wednes- 
day’s deadline, be must have 
completed and lodged tiie candi- 
date's nomination papers duly 
signed by 10 electors and 
backed by a £500 deposit 

From the weekend, he will 
oversee canvassing by upwards 


of 100 party workers 
night, rising on polli 
itself to perhaps 400— in 
volunteers drafted in fn 
winnable constituencies 
such as Devizes. (The 
adheres to the “ broad . 
view of the party, Mr 
would deal “ severely * v 
attempts to peddle the i 
Militant Tendency or an 
factions on the doorstep 
* He will organise p 
only four public meeting 
from sessions arrang 
groups such as Churches 
dents’ associations. “Yi 
a public meeting and gt 
25 people, most of wh 
party members,” be 
“ Things are far more 11 
target groups and dire 
these days.” 

> J Lo< £ 1 labour strategy 
identified no fewer t 
torget groups for dfarei 
snots, including young 
ethnic minority groups 
railway workshop ci 
and households likely ti 
worn a Tory-imposed p 
athree-adult family wo 
£291 a year more in s 
Labour claims. 

Mart <* Mr Walton’i 

cultivating an expecfei 
postal voters, 80>er 
whom are likely t 0 be 
su»orters on his reckoi 

As Conservative candt 
amon Cooobes is defe: 
majority of only 1,395 i 
as SDP candii 
Berek Scott is look 
increase his 1983 vote a 
24 per cent, tb* PO sta 
could be crucial, 

Crucial* too. could 
appeal of Labour's 
address— mailed tow.-v, 
end of the campaign ' 
voter and evidently Mr \ 
pride and joy. 

“We-vo got fui 
addresses going out I 
white envelopes, if w 
have the money, it wi 
black and white in 
envelopes,” he ^ 







I 


Financial Times Friday May 22 1987 




10 


UK NEWS - THE GENERAL ELECTION 


Kinnock pledges to restore “ of 
teacher negotiating rights 


BY MICHAEL CASSELL, POLITICAL CORRESPONDENT 
MR NEIL KINNOCK, the emphasised, that it was one 'for 


The Labour leader attacked 


disruptive action in tne run-up 
to the general election but 


.. • ' supermarkets." He claimed that 

the recent sug- teachers and parents were 


pledged that a Labour govern- gestion I^M* CU« Rad^ tSe SESt at Zt hT , «]£* 
nient would, within hours of be- shadow Education Secrenuy, 2S!do5a Sd^tunte " 

tog eiected, remove the cause that the teachers should with- ofM? KinnShBakStheEdu- 
o£ the dispute. hold their action during the StSn Secretary? 

Mr Kinnock. who was visiting campaign, Mr Kinnock said a «. 
schools in Newcastle, said the strategic approach *’ had been 

teachers’ action represented “a suggested to the teachers but 2*5® 

measure of the immense resent- Hiat they bad been tinder no ™'i ca H.°i?j € J!f 
raent ” at their treatment by the obligation to ~ accept it He 

Government. y Added: “ That is what happens op P° I ? :u ^ y . to .. m ^® 

tuuuik. sodetv ” schools fit for the future. They 

* ft* 1 -Mr Kinnock, Who gave a cau- ^ ****“*■_“ ^jected tHinca- 


had, instead, "subjected educa- 


--- - - iwr Kinn m-ir who nve a can. ouwjtvreu cuuta- 

decisions to be tak«a after he ttous wdcome to tim otaSXi tion to dogma, insecurity and 
mox-ed mto Downing Street evidSS - timt £ilSS^£ insults” 

neSjtiaSi^riKh^to ^hir'h 5 £b closing the gap on the Tories, He continued: "Not content 

repeated hie challenge to Mrs with increasing ' social division 
S J?*^ “ d Margaret Thatcher to debate and disabling our economy in 
perforaance enfatled tiiem- policies with him face to face, the past eight years, the Tories 
Of the latest decision by the He said: “The' more exposure now want to intensify that divi- 
:S ac r5^ t0 i °?w Pe number Mrs Thatcher gets the more we 'siou and' disability by imposing 
or strikes in the two weeks be- have a guarantee of our -con- marketplace methods on school- 
fore the election, Mr Kinnock tinuing progress." tag." 

BUM hits at parties over training 

BY FIONA THOMPSON 

BRITAIN’S managers fiercely Brian Wolfson, Bur chairman. UK said in Its manifesto it 
attacked allihree main political Only one in 10 managers expects the new Government to 
parties yesterday for ignoring entering Industry in Britain had create a climate of enterprise 
in their manifestos the “vital any management dr aining , conn and innovation, 
issue" of management training, pared with nine out of 10 in « Managers are keen to im- 
“ We were shocked and ™£. us * The number of people ^ the UK’s industrial and 
appalled that one of the most tinting a basic management trading position and the Gov- 
crucial problems facing the Qua im canon each year needed enunent has a role in providing 
country/ received, not one to i^frmn the present 2.000 
word of attention m the Con- to 30,000 or 40,000. m t n*>ntnn 


word of attention in the Con- 
servative, Labour or Alliance 


How can you have a broad 


Mr Benton. 

The manifesto rails on the 


manifestos,' 1 Mr Peter Benton, enterprise culture without ade- Government to spend more in 


director general of the British <pu 
Institute of Management, said Efl 


trained managers? specific areas, particularly on 
e management Is crucial infrastructure and research and 


yesterday at the institute's in the generation of wealth, for development! to make strikes 

launch of its Managers' Mani- the benefit of the entire popu- in e«»»nHa! services unlawful; 

fesio. . . . lation,” said Mr Benton. to reform the local government 

* It is the classic example of The institute, which repre- rating system and to encourage 


physician heal thyself;" said Mr seats 75,000 managers in the profit-sharing schemes. 

Greens sow their campaign seeds 


BY FIONA THOMPSON 

THE GREEN PARTY has one tion system in the world, a issues to the centre of the 
thing in common with Mrs wonderful health service, in- political agenda since then. 
Thatcher— it too has Its eve on creased prosperity for every- At least 140 candidates are 
thA n»Tt ranturv y body— -but all that is no good if standing on the Green ticket, in 

„ - . the air is unfit to breathe, the spite of the rise in the deposit 

v vre concerned ■water is poisoned, the soil is to £500. 

about tomorrow and beyond, polluted and the threat of The manifesto, to be 


about tomorrow and beyond, pointed and the threat of The manifesto, to be 
not just this century _ but the annihilation hangs over the launched next Thursday, will 
next as well, .said Ms Jean whole planet” include unconditional unilateral 

Lambert, co-chair of the party The Green .Party may have nuclear disarmament, witb- 
council, at yesterdays campaign jggt &li its deposits in the last ' drawal from Nato, and the in- 


launch. 


general election but claims troduction 


“ Yon can have the best educa* great success in bringing green representation. 


proportional 


needed 
for No. 10 

By Our Political Correspondent 

A CITIZEN of the world 
with deep reserves of "stick- 
ability ” are the principal 
qualities listed on the currt- 
culum vitae of Neil Gordon 
KUmock, privy councillor. 
Labour candidate for Ishvyn 
and the 45-year-old applicant 
for the post of Prime 
Minister. 

At the end of a day’s cam- 
paigning on Tyneside, during 
which the Labour leader 
appeared confident, relaxed 
and on top of his brief- Mr 
Kixmoek found himself in the 
library of Tynemouth Sixth 
Form College answering well- 
targeted questions from a 
group of equally well-briefed 
students. 

As one of his young and 
self-possessed audience 

pointed oat, their guest's 
designs on No 10 made his 
description entirely appro- 
priate. What, she asked, were 
the qualities which he be- 
lieved entitled him to harbour 
such ambitions and why would 
he make a better Prime 
Minister than Mrs Thatcher. 

Mr Kinnock who was 
earlier in a genuine "class 
struggle" as he forced his way 
through an infants’ school 
paeked with wide-eyed child- 
ren and red-eyed journalists 
responded in the assertive 
style all applicants are told 
is essential for success in 
such cross-examinations. 

He said he had demon- 
strated a toughness and reso- 
lution and had clearly shown 
that he knew what he wanted 
for the country. What he 
wanted was to make it fit for 
the future, a phrase used 
earlier in the day in respect 
of education services under 
Labour. 

Mr Kinnock said that in 
three and a half years es 
Labour leader, he had demon- 
strated a consistent sense of 
purpose and toughness in 
sticking to it although tough- 
ness was not in itself enough 
for anyone who wished to 
lead a democracy. 

The leader’s interview will 
continue today in his own. 
South Wales constituency, 
next destination on his 
nationwide tour. Three nail- 
biting weeks from today he 
will knew if he has got the 
job. 


SHARE IN 
OUR SUCCESS 

Under new direction MBS, the country’s leading independent supplier of 
computer equipment and related services, has secured a firm base for 
future growth. E3 This transformation has been brought about through: 

B Rebuilding the management team B Restructuring the company B 
Revitalising products and services B Balanced, profitable growth 
B Confirmation of existing and potential markets. □ “Our objective is to set 
a new standard for business excellence in the marketplace, and thus be recognised 
by suppliers and customers alike as the summary of results 

company whose reputation for efficiency, S 

. Turnover 75,870 66,788 

qualit? of service and product range * ^ , (462) 

second to none* 13 We aim to be the leading pie-TaxProfit/cLoas) 

on ordinary activities 937 <3,409) 

company in our market sector providing L_ 

business customers with a total range of computer services. 39 * El MBS has 4,500 
shareholders. The Financial Times has nearly a quarter of a million readers. 
If you are one of those readers who want to be part of MBS* success, you 
can find out more by reading the MBS Annual Report obtainable from: 
The Company Secretary, MBS pic, 119/120 High St., Eton, Windsor, Berks 
SL4 6AN- El The Annual General Meeting will be held at: The Glaziers 
Hail, 9 Montague Gloste, London SE1 9DD today (May 22) at 11.00 am. 



-pk 


Michael Cassell on a city facing three marginal contests 

Personalities on knife-edge 


“ PETER BRUZNVELS — Man of 
Action," reads the headline on 
the election pamphlet of the 
Tory candidate for Leicester 
East. His fiercest parliamentary 
critics would not deny him 
that particular accolade, 
though few believe and many 
hope that no amount of action 
on his part will get him back to 
Westminster next month. 

Since his election victory by 
just 933 votes in 1983. Mr ( 

Bmin ve Is — best remembered 
for his self-appmtznent as the 
public hangman — has rarely 
been out of the headlines. 

When he has not been ban- < v . 
ning cross-bows, saving red 
telephone boxes, rising to ask 
one of 224 questions in the 
Commons or submitting one of 
1,793 others for written answer, 
the former researcher, company 
secretary and management con- 
sultant has Been trying to Criminal 



*|i w vun^a avt kulivu uuonvi . . . . . . 

, _ _ ■ Acn/oy Ainw/ooti 

WCTeta^an^managentent 1 ^^ Marginal defenders (from left): Derek Spencer, GreviHe Janner and Peter Bruinveis 

btrSTa nower’base in^na of £ rixnllial , Justice Bill, Mr an even wider dimension for important ethnic vote. A tire- 

iJL. Spencer is up agmnst tough Mr Bruinveis, given than Ids less constituency worker, his 

u® constituen- opposition in the shape of Mr Labour opponent is Mr Keith personal appeal has long held 

rorfnrL Jlm Marshall, the Labour can- Vaz, a Portuguese-Goanese left- him in good stead, but he has 
dWate he defeated in 2983. Of winger who was one of the in- had some skirmishes with his 
wrBnhort Mr Marshall, he says: ** He has spirations behind the party’s local constituency party and his 

fJw b ® en ott toe boil for four years black sections movement and grip on the local scene is, 

*"■ *" of the ara- - — - * 

£, d 0f The former Tjrtmm. MP nn M But Mr Bruinvel. cava h- . He Says he will fight OH the 


Bminvels is now fighting hard 
to prevent another period of y ' 
enforced unemployment. The 


ciuarvni unemployment. The former Labour MP once oiuimcia ooja ue u> fecuM? wi, | 

Neither is Mr Bruinveis— a signed a Commons motion winning strong support from the SSinn^SttS 

fan of weekend walkabouts to criticising the Tory Government Hindu and Muslim communities 

meet the voters— alone in try- over the death of IRA banger- anti, though he will not make ” opponents, u the unthink- 
ing to win another mandate striker Bobby Sands and Mr anything of ft in the campaign, 


local, ethnic population. 

But Mr Bruinveis says he is 


from the people of Leicester. 
Next door in Leicester South, 
Mr Derek Spencer for the Tories 
has the dubious honour of hold- 
ing the smallest parliamentary 
majority of all — seven votes put 
him in last time. In Leicester 
West, which completes the 
city's political map. Labour's 
Mr Greville Janner is defending 
a shaky majority of only 1,712. 

Mr Spencer himself is not 
depressed by the scale of his 
task, given local election results 
which would have given Labour 
a 1.000 majority in bis seat " I 
was a newcomer in 1983 and if 
I could win then, I have cer- 



also privately believes that the 
presence of an Asian candidate, 
particularly one with a left-wing 
background, will deiter some 
traditional supporters. 

In 1983. Mr Bruinveis clearly 
benefited from the previous de- 
fection of Mr Tom Bradley, the 
sitting Labour MP, to the 
Alliance which split the vote 
for Ms Patricia Hewitt, now Mr 
Neil Kinnock' s press secretarv. 

This time, he will have no 
such help and a national survey 
of marginal seats shows that, 
for all bis bard work, he can 
expect to lose. He remains 
defiant: “ Any seat with a 
majority of less than 1,500 is 


1983 elections results — 
Leicester East: P- Bruinveis 
(C) 19,117; P. Hewitt (Lab) 
18,184; T. Bradley <5DP/AH> 
10,362. C majority 933. Torn* 
out 73.2 per cent. 

Leicester Sooth: D. Spencer 
(C) 21,424; J. Marshall (Lab) 
21,417; R. Renold (Lib /All) 

9,410. C majority 7. Turnout 
72.3 per cent. 

Leicester West: G. Janner 
(Lab) 20.837; R. Meaeham 
(C> 19025; S. Fernando 

(SDP/AD) 5,935- Lab 
majority 1.712. Turnont 68.8 
per cent 


KS Spencer n„ he intend, to 

remind peopi. of hi, opponent-. ww> it. .he gt nbhed.” 


the front trench of British sympathies. 


politics.” 


For Mr Janner. a Jewish happened, he would find 
barrister who has held Leicester 110 double in filling his time — 


A Queen's Counsel and parlia- Spencer acknowledges 


Like Mr Bruinveis, Mr West {or 17 years as a director of Ladbrokes, the 


father’s 25-year tenure, the eon- proprietor of a publishing 


mentary private secretary to the importance in Leicester of the test will also be as much about house and a lecturer in law. 

Attorney General in the last ethnic community, which in personalities as politics He Logic suggests that if the 

parliament, Mr Spencer takes parts of the City accounts for appears wholly confident that ^ Tories lose, Mr Janner 
heart from past evidence that up to 27 per cent of the elec- the Janner dynasty will con- should win, or vice-versa. But 
it has proved hard to shift the torate. Mr Spencer says the tLnue, denying even that he there are strong personality 
incumbent from his seat Tories stand to do well on knows or cares about the factors at play which could just 

An ardent supporter of education among Muslim voters, identity of his Tory opponent wreak havoc with national 
capital punishment who was in the light of his support for (Mr Jim Cooper from Solihull), voting patterns. As Mr Spencer 
dubbed u Judge Jeffreys " by single-sex schools and his rejec- But Mr Ja oner's slim majority Puts it: “On June 12, we could 

one political opponent for his tion of the gay rights move- does not justify any over- have won all three seats or lost 


performance during the com- ment 


confidence, despite bis claim to all three. It is on a knife- 


mittee stage of the abandoned The ethnic isue will take on hold the support of the all- edge. 1 


. ,v.,1 


V ■ 


here... 












rr h" ! t 




B Please send me a 

: j| Name 

Position 

j| Organisation 

■ 'jp Address 

i 

: g Telephone Nc 


isacopyoftlieDataBolveDeciaon Maker’s Guide. 


Group Marketing: I 
Datasolve Limited 
Datasolve House, 


99 Staines Road 1 
Sunbury-onThan 
Middieses, 
TW167AH. 

Tbl; 0932 785566. 


■[Trom vKc Annual ReponJ 












12 


MANAGEMENT 


Financial Times Friday May » 1957 
EDITED BY CHRISTOPHER LORE*Z 

mhIW> 


DURING THE last decade, be- 
ginning well before the advent 
of Reagonomics, the service in- 
dustries have come to be re- 
garded as a panacea for 
America's economic problems — 
futuristic and dynamic indus- 
tries would sustain America’s 
economic dominance regardless 
of the gradually emerging prob- 
lems of the manufacturing 
sector. 

But for Congressman Buddy 
McKay of Florida, a state which 
has enjoyed more service-led 
growth than almost any other 
part of the nation, there is no 
allure in a post-industrial 
future. “ Our fear is that our 
destiny is to become a service 
economy. We are competing 
like crazy to get more manufac- 
turing jobs that will pay a wage 
above the prevailing service in- 
dustry rate- We desperately 
need the manufacturing jobs if 
we want our state to be a place 
where our children can grow up 
and afford to live.’ 1 

For Professors Stephen Cohen 
and John Zysman, two econo- 
mists at tiie University of 
California at Berkeley, even 
the concept of a service-based 
economy is bogus — a point 
which they argue in over 300 
pages In a recently published 
book, "Manufacturing Matters," 
with the subtitle “ The Myth of 
a Post-Industrial Economy.” 

For Brian Quinn and Christo- 
pher Gagon, two management 
professors at Dartmouth Col- 
lege, the services are the 
foundation of national pros- 
perity; but they wonder 
whether American companies 
are really proving any more 
successful in this sector than 
they have in manufacturing in 
the past. "Will services follow 
manufacturing into decline? " 
they asked in the title of a 
major article in Harvard Busi- 
ness Review' last December. 

Their conclusion is generally 
damning: "Inattention and com- 
placency threaten to undermine 
the competitive ability of these 
industries at a time when their 
importance to the national 
economy has never been 
greater.” 

A few years ago, it would 
have seemed almost unpatriotic 
for Americans to make any of 
these statements. In economic- 
ally sophisticated circles, it had 
become an article of faith that 
services like banking, tele- 
communications and computer 
progr amming would form a firm 
foundation for continuing pros- 
perity long after traditional 
manufacturing industries were 
swept away in the never-ending 
cycle of shifting comparative 
international advantage. 

In fact, since 1973, when Pro- 
fessor Daniel Bell of Harvard 
first popularised the concept of 
“ the post-industrial society,” 
few economic arguments have 
been so frequently reiterated as 
the analogy which he drew 
between the decline of manu- 
facturing today and the shrink- 


Why a service economy is hb . 'jpjia^a 


age of agriculture in the pre- 
war era. 

US agricultural employment 
collapsed from 20 per cent of the 
labour force in 1939 to 3 per 
cent 50 years later, but this pro- 
cess of "creative destruction” 
seemed to do nothing but good 
tor the American economy and 

US living standards. 

In the past few decades, the 
same kind of natural and 
healthy transformation was said 
to be displacing manufacturing. 
Manufacturing employment has 

shrunk from 34 per cent of the 
non-agri cultural total in 1950 to 
29 per cent in 29S6. while ser- 
vice jobs have expanded from 
59 per cent to 75 per cent, with 
the other 6 per cent now 


4 . . . from agriculture 
to manufacturing to 
services is a 
natural change’ 

President Reagan 


accounted for by construction 
and mining. 

But there has been no cause 
for concern about this evolution. 
Between 1965 and 19S6, the US 
economy created 38.5m new 
jobs. Not a single one of these 
was in the manufacturing sec- 
tor, where employment actually 
slipped from 19.2m to 19.1m 
during these 21 years; in the 
services, on the other hand, 
employment nearly doubled 
from 38.3m to 75.2m. 

The early Reagan -Administra- 
tion, with its benign neglect of 
the exchange rate and its 
studied indifference to the 
declining competitiveness of the 
manufacturing sector, brought 
this post-industrial argument to 
its apotheosis. 

"The move from an industrial 
society to a post-industrial ser- 
vice economy has been one of 


the greatest changes to affect 
the developed world since the 
Industrial Revolution. The pro- 
gression of an economy such as 
America's from sgricuhnre to 
manufacturing to services is a 
natural change,” the President 
himself argued two years ago In 
a report on trade to Congress. 

Today few Americans are 
quite so sanguine about the 
post-industrial economy. There 
are at least four reasons why 
scepticism is spreading about 
excessive reliance on the service 
sector. The first and. for most 
Americans, the most important 
reason for the lade of en- 
thusiasm is the one put by Con- 
gressman. McKay: the service 
industries tend to pay low 
wages. 

In 1986, average gross weekly 
earnings in US manufacturing 
were 8396 Earrings averaged 
$275 in the service industries. 
In fact, the steady shift from 
manufacturing to service em- 
ployment has been largely 
responsible for the long term 
stagnation of US income levels 
which lies at the root of the 
whole competitiveness issue. 

The reason for low service 
wages is straightforward and, 
from the professional econo- 
mist’s standpoint, equally damn- 
ing. The service industries have 
shown miserably low produc- 
tivity growth for many years. 
This also explains why the 
share of services in US employ- 
ment has grown so rapidly, 
while the share of services in 
GNP has hardly increased since 
I960 (see charts). 

But why have productivity 
and wage performance been so 
feeble in the service industries? 
This question leads to the 
second cause for concern about 
the trend towards a post- 
industrial economy. 

In many ways the concept of 
"the service sector” is mis- 


- sl- 



OAN AMERICA 
MAKE IT? 


In the final article 
in the series, 

Anatole KaJetsky and 
Gny de Jonqnieres 
look at attempts to 
fill the gap left 
by the decline in 
manufacturing 


low with less en m acCBtiiofor Aswrica 

dynamic productivity, records. future. Many of the Wp^®* 
How productivity is to be 

measured is industries like whieb US living standards m*y 

wSrdepena in the foture J™ 

xnrance iff * vexed ggestiotu : yyy P* * 

For what they are Worth, the tndwtries.- H 

Bareanof5SurSt*S^&dm» 5£j ( ?,? ct S r 

compfle indices frtsm on W 

measures, of physical ootjalt. i m«iy W*. • . 

sack « flie volume . of -inxer; 

action* cleared by the-canart ’ flPg?. TT — 

TOMffiscKwva uy crudely £ha* as many 


ao«l» 

‘ vhU* aUnrlM 

chlafric aide*. {*”>**•” 

p *3JSJ5ir. there is no 

fop thlS JS ^ 

evident* »r j 0 b«rv- 

S^n^rfArind^* 1 relation* 


ind*m»rkerfn« P.robk'ps of 

US airlines, the 


l eading . A hairdresser, shop 
assistant or hot dog vendor has 
nothing in common, from an 
economic standpoint, with an 
airline pilot, software engineer 
or investment banker. 

It is the latter category of 
"high value added” service 
occupations that is evoked when 
bullish sociologists and politi- 
cians describe their visions of 
the post-industrial ** information 
economy.” But in reality, the 
overwhelming majority of new 
service jobs have been created 
in the humdrum, no- tech first 

category- 

Thus President Reagan, in 
one of his reports on trade to 
Congress, maintains that "vir- 
tually all the 2D bigbest-growtii 
occupations for the 1980s are 
involved with the handling of 
information.” 

He went on to provide a 
strange and motley roll can of 
these alluring service occupa- 
tions: computer programmers, 
analysts and operators, opera- 
tors and mechanics for data 
processing machines, econo- 
mists , travel agents, aero- 
astronautical engineers, psy- 


chiatric aides and paralegal 
personnel. 

However, as Professors Cohen 
and Zysman point cut, the. 
President does sot mention 
that “ despite the projected 
rapid growth of tins hetero- 
geneous group, teg ether they 
don’t add up to the increase is 
fast-food workers.” 

Indeed, of the 17 Am non- 
government service jobs created 
in the US between 1972 and 
2984, 22 per cent, by far the 
largest single group, were hi 
restaurants mid retail trade, a 
s e ctor where average hourly 
earnings were 38 per cent below 
the level in manufacturing. 

In the most important sub- 
category within tins group- 
eating and drinking places— 
productivity, according to the 
Bureau, of Labour Statistics 
definitions, has been declining 
by 0.4 per cent annually 
throughout the 1970s and early 
1980s. 

To make matters worse, 
some of the futuristic Indus- 
tries which are supposed to 
make the service economy so 
attractive also turn out to be 


. finked service provider* 

r dtoge from tin tru cker* who 
jB b w components from one 
uamzfaemring piint to another 

r - i-*? — 

V£- 


been feeble. Commercial bank- 
tag, for example, enjoyed: an 
average increase of output; per 
employee hour of only- 0.8 per 
cent from 2970 to 2984, despite 
the banks* vast investment -I& 

com out era.- hi I m m w hI teltaar-- r 

Many , economists, <• tp.say JCfDthlllg in COttUllOfl, 
nothing of m a na g e rs Jit service ■ -fr om an eftmomic : - 
industries, deny the vaUdfty of ■ al] 4Vh »• 

til such, productivity measures ,: . jtaRdpoiDti-WltD 3 
for service industries, -software eBgmeer 

example, Edward PaphMn- ; <*fie :! jr • - - : 

Brookings fastttation economifffc . • - . . ■ ■ “ . ._• 

who is probably the wortT* and who would automatically 
leading authority on prodpe-' lose their jobs if fuuy 


iivity and growth aawtotfcjtasaBmiMed products xewt simply 
maintains that the imported from abroad, to the 


statistics inadvertently transfer 
many of the productivity galas 
made in service businesses* to 
tiie manufacturing industries 
which these businesses 
As modi as 80 per cent ef 'tite 


Investment bankers who might 
«r\ might- not he able to es»b- 
lisft financing Unkx with foreign 
mamzfactiu ub if US produo- 
'tiw i shifted overseas. 

But oven if the direct inter- 
dependence between the ser- 


2£»n> in •«*■»*» «■">» 


to immmst «Snm cwtate -W»: * ”**. F**™ * 

in the manufacture of con- suppose, that Americans are 
putera, he argues. Bn* ^ow. %**** £ ramfogaervice todas- 
ieo.nnintfftiT mearorw of tries titan manufacturing buri-, 
Individ Sri Industries* prodne- ggses? The' strength of many 
tivity U computer. xoanofitcfrir- US- service cottpuiea-iB con- 
ing Is improved because of 'tim to their counterparts fa 
work of independent derignera, anorotectoring. may bv expUc- 
inventors or software w riter*? " able by some inherent talent 
he asks. J 'J" American manager- for 

This question raises the .third 'naming “peoplooriented” bttti- 
doubt about the post-industrial 


Percent of total 



, Percent of total 


(AttxygtafttT962doterai 





V -' N 

-tv . * ■ ■ •< • , . 

f ■ • ; * ■- :J. '* *: ! ' . • . • . 

•• : ■ ■■ ; • - g 

■*»- M.nnf , rill I. ■ . ' S 



1947 50 

Scwea» DwAo^laCor 



StissBU” 

Jwmy US banks or Ap *®JL 
in^y low production n« lW * trd - 
of much VS advertising- . 

A MMMer «^watioh 

relative ptMpHMT 

vice economy l^s in g* g™* 

non. of many service dusuksscs 

this very future 
VSSSm tike retailing w 
policing wiH also ensure that 
they ean never make up for *he 
SSnSfiona! wpedtijene* 
which much of the manufactur- 
ing sector has lost. _ 

Other services, on the othc r 
hand, are gradually becoming 
more and more exposed to influ- 
ences from abroad As a result 
of technological change and 
deregulation, services like trie- 
communications, airlines, twnic- 
ing and insurance are rapidly 
taking their place alongside the 
traditional commodities of inter- 
national trade— and US govern- 
ment: policy is doing all it can 
to accelerate this development. 

Because these services are at 
least a decade behind the manu- 
facturing industries in Ihrir 
international exposure, it is still 
too early to judge how many 
of them will prove vulnerable 
to competition from abroad. But 
the initial indications arc not 
encouraging. Today only 11 ot 
thd world's biggest 100 banks 
are based in the US. while 24 
gre based in Japan and 50 are 
Europe. 

/ There are, of course, at least 
ag many success stories, ranging 
from American Express to 
B$Domi)d > 8 and Electronic Data 
System* to counterpose against 
the failures. However, the warn- 
ing signs are dear. As Profes- 
sors Quinn and Gagnon conclude 
in. their Harvard paper: 

. ‘ Tt vlH take hard and dedl- 
eatod work not to dissipate our 
broad-baaed lead in services, as 
wt did in manufacturing. Many 
iff- die same causes of lost posi- 
tion ace beginning to appear. 
Dtifr we encounter the lnat- 
■jE&htinn to quality, emphasis 
Oh.&cale economies and short- 
'term orientation that earlier 
injured manufacturing.” 

i i 


IS anlefn In fftfcr ssrlm s 
on May 11. m. W *nd 20. 


TECHNOLOGY 


•X". --y/.l. , " ' • ■ " 

'• ' r - v;:‘ : " iTlfintroni 


Glare-free lamps and a sunnier lounge 


Roy Garner in Tokyo explains how the Japanese are bending the roles on die behaviour of light 


JUST AS optical fibres are 
stretching horizons in data 
transmission, “ luminous flux 
control” (management of the 
amount of light falling in a 
given area), is about to revolu- 
tionise our visual environment 
The technology promises such 
advances as glare-free, highly 
energy efficient car headlights 
and street lamps, perfect wall- 
size projection of liquid crystal 
display (LCD) colour TV pic- 
tures and major improvements 
in materials inspection pro- 
cesses. It could even bring sun- 
light Into north-facing rooms. 
And, yes, it is all done by 
mirrors — though this is no 
detraction. 

Studies over the past nine 
years by researchers at Wieriio- 
giken Inc. in Japan, have high- 
lighted the bottlenecks faced by 
conventional image-projection, 
cathode-ray tube and LCD 
technologies — notably the diffi- 
culty of producing- the large- 
scale images, of high quality 
and cost-efficiency, which are 
increasingly demanded. In the 
case of the LCD. the image 
actually improves in proportion 
to its miniaturisation, 


Taking the cathode-ray tube 
as an example, it can be seen 
that the main obstacle to pro- 
gress is the fact that the key 
functions of producing light, 
colours and images are inte- 
grally combined, precluding any 
localised enhancements for the 
removal of image distortion. 


A high-quality TV 
image 20 times 
original size has 
been made possible 


colour shift or non-nniforza 
brightness. 

The researchers at Nissho- 
giken split these functions, 
using a xenon discharge lamp 
for light production, filters for 
colour production and a LCD 
unit to produce images. They 
then developed the remaining 
essential requirement, a system 
to manipulate the intensity of 
the image. This involves the use 
of mirrors with free-curved sur- 
faces evolved by computer-aided 


design. The company has al- 
ready taken out 50 worldwide 


patents on these flux-control 
processes. 

The remarkable degree of 
control over the flow of light 
which this technology facilitates 
is best illustrated fry the com- 
pany’s projector systems. This 
unit can be placed at any 
distance or angle relative to the 
screen and the image always 
remains In focus and free from 
distortions, even if the 
“ screen ” is an uneven surface 
such as. a living room_ waU. 

If several projectors are used, 
separate images can be super- 
imposed, or can be placed side 
by side with a seamless join 
— the latter facilitating super- 
large composite pictures. By 
inserting a LCD into the pro- 
jector instead of a transparency 
(a 2 in LCD is currently used) 
a high-quality TV image 20 
times original size can be pro- 
duced, featuring uniform 
brightness and an absence of 
colour shift. 

In another form of projector 
technique, a "headless” pro- 
jector can be used for the 
inspection of refraction changes 
or defects jn transparent bodies 
or fluids. Such products as 


compact discs, integrated cir- 
cuit designs, lenses and 
machined surfaces, which are 
currently inspected by the use 
of TV displays, can be analysed 
using a larger, distortion-free 
and constant-focus image. 

Based on similar optical 
principles, Nisshoglken has also 


Pictures from several 
projectors can be 
joined seamlessly for 
estra-Ianje displays 


The open and shut case for 
Toronto’s £120m super-stadiiu 

BY DEREK COOHBER 


developed a new acrylic plastic 
screen. Called a Fresnel screen, 
it is fiat but has lens-like pro- 
perties. When attached to a 
video display terminal the 
material gives a reflection rate 
of 0.06 per cent, equivalent to 
some ten times less glare than 
that of current screens. 

Souya Mori, sales manager 
of Nexy Carp., which handles 
sales and marketing of 
Nisshogiken - developed pro- 
ducts says this material can 
also be applied to the likes of 
car headlights, floodlights and 


stage lights, to project a highly 
uniform, glare-free, cast of 
light; from almost any angle of 

origin. 

In tiie case of street lighting, 
Mr Mori estimates that a cost- 
saving of 30-50 per cent could 
be achieved through • the 
elimination of light-spillage — 
enabling tiie use of lowers 
powered -lamps. . , 

This highly uniform spread of 
light can also be beneficial in 
delicate heating processes. In 
lamp-anneal techniques, ; in 
semi-conductor manufacture, for 
example, the absence of any 
“ hot spots " is critical. ■ Mr 
Mori suggests that since the 
wafers being handled by makers 
are steadily inc reasing in size 
this problem will "become more 
acute 

; Just as the fresnel screen 
can deflect light, it can - also 
gather it. By fixing the material 
to the windows of rooms which 
receive no direct sunlight, 
major increase in~ brightness 
can be achieved. Mr Mori esti- 
mates the level of light in a 
room could be boosted by as 
much as 30-times' by using the 
modified windows. 


THE world's first sports and 
leisure stadium with a retract- 
able roof that can open or close 
within 20 minutes is under con- 
struction on an 11-acre site in 
Toronto. 

The Dome, a 55,000-seat 
harbour-front complex being 
built at a cost of C$245m 
(£ 12 0m), is scheduled for com- 
pletion in April 1989. From the 
playing field to the top of the 
roof it will rise 90 metres, the 
height of a 30-storey building; 

A four-piece steel skin, un- 
supported by pillars, will form 
the eight acres of roofing in a 
half-moon shape over the 900 ft 
diameter stadium. Hydraulic 
controls will be used to move 
three of the panels, while a 
northerly section will remain 
static. 


Two of the three moving 
sections will be parabolic arch 
plates supported on a set of 
tracks on each side and 
win be “ stacked " at the 


northern end of the stadium 
when the roof is open. 

The third section is a 
highly creative quarter dome 
which mil move in a clockwise 
direction on a circular rail. 
Interconnected steel trusses 
will support two corrugated 
steel deck plates which will be 
covered with a single white 
PVC membrane, giving 
acoustic and thermal insula- 
tion. 

To open, the stadium roof’s 
south quarter dome will 
traverse 180 degrees to position 
itself on top of the stable 
northern section, then the two 
intermediate panels will slide 
over to nestle on top. The 
stadium will be 91 per cent 
open at this stage, giving just 
ptirmg h shade for giant replay 
screens to be seen by sports 
spectators. 

The will be supported 

on 300 mm by 300 mm steel 
tubes built on to the roof 
misses, which will be about 


4i metres deep. A single ply 
rubber roofing membrane will 
add insulation properties. 

The stadium will be the offi- 
cial home of the Toronto Blue 
Jays baseball team and the 
Argonauts football team. It is 
a joint project by provincial and 
city governments and private 
corporations, including the 
Canadian Imperial Bank of 
Canada, Ford Motor Co of 
Canada, Coca Cola, McDonald's 
Restaurants of Canada, Merrill 
Lynch and Xerox Canada. 

Mike Allen, the 45-yearold 
structural engineer in charge of 
the roof project anticipates few 
teething - problems because 
several models have been built 
of the structure in c luding a 
three-metre brass version. Wind 
tunnel tests have also checked 
load and environmental 
stresses. 

Calculations involved in the 
complex geometry of the curva- 
tures in the roof structure took 
a year using computer-aided 



With the roof back the stadium will be 91 per cent open, 
giving just enough shade for giant display screens to be seen 
by spectators 


design equipment, says Mr 
Alien. 

As the C$50m (£2&5m) roof 
structure will be assembled on 
site piece by piece he empha- 
sises that all parts will have 
been rigorously tested and 
hydraulic controls checked six 
months before the stadium 


opens. 

. Architects to The Dome pro- 
ject are Robbie Sane, and Carr 
Donald Associates is providing 
tiie roof drive technology. 

A hotel, restaurant and night 
dub extension will follow com- 
pletkm of the stadium, at a 
farther cast of CfZOQm (£46m). 


WORTH 

WATCHING 



Edited !>y Geoffrey Choriisli 


Testing time for 
electronic designs 


IN ELECTRONICS design, 
and manufacturing, .the h> 
formation generated in a 
screen and keyboard com- 
puter-aided design system for 
electronics boards or chips 
is just what is needed in 
automatic test equipment. 
Having designed and simula- 
ted the circuit, most of the 
information needed to test it 
most also have been created. 
However, in practice the de- 
sign data is not suitable aa It 
stands and needs extensive 
modification. 

' Direct connection of com- 
puter-aided engineering data 
into the tester is an import- 
ant step in realising computer 
integrated manufacturing 
(GDI). Faction Schlumber- 
ger of Wlmborne, Dorset, in 
tiie UK has therefore de- 
veloped suitable conversion 
software called ITG (intelli- 
gent test generation). ITG 
translates simulation data 
into a test program for the 
board or ehip, previously a 
time-consuming ■ man ual 
operation. 

It takes all the data from 
the design system that de- 
scribes the interconnections 
and voltages on the board and 
processes it into Faction’s 
own board description lan- 
guage. Then, utilising tiie 
testing database of the model 
720 autotester, it derives test 
programs that can rtuz with- 
out modification. . 


American Indiana 
to use solar power 


AMERICAN INDIAN tribes 
in Oklahoma are set to be the 
first large-scale users of elec- 
tricity derived directly from 
the son. 

Alpha Solareo, the Cincin- 
nati, Ohio solar power 
specialist has .signed- two 
|175n development contracts 


with the Pawned and Otoe- 
Mbsouia tribes. The com- 
pany plans to build two 70 


me gaw at t gene r ati n g stations 
on tribal lands. Each station 
.WO) supph- half its total 
power, using pheto-voltatle 
technology and the other 
half by gas-firing. The sun- 
power electricity might SO 
direct to consumers, or be 
used to meet extra demand 
on conventional electricity 
plants «t peak times. 

Sunlight failing on the sur- 
face ftf photo-voltaic cells is 
converted - directly to elec- 
tricity with efficiencies which 
reach 18 to 12 per cent in the 
best designs. -Connected to- 
gether, the cells can provide 
various combinations of 
direct.:. ament and voltage 
which , can be converted by 
modern power electronics to 
.alternating current for con- 
sumer use. 

Alpha Solareo has been set 
up to engineer solar power 
on a large scale. Mr Iff. 
Uro&hevieh, its president, 
. Says fbe company is moving 
solar energy dot of its "per- 
petual research and develop- 
ment phase and into the real 
world of producing cost-effec- 
tive photo-voltaic power on a 
utility scale,” 


Electronic product 
design service 


HEBER 


■0453886000 

Patford Stroud gjoucgstmsttiiB glbmt 


Putting: across the 
machining message 

REN18HAW CONTROLS, a 
new UK company formed to 
exploit computer integrated 
manufacturing (CXBt), has 
launched its first product 
based on MAP (manufactur- 
ing automation pretocal). 
MAP la a world initiative, led 
by General Motors, to induce 
makers of automation equip- 
ment to use the same com- 
muni cations rales, thus allow- 
ing any machine to "speak” 
to any other. . 

- The new company was 
formed last year by the Rati- 
riww Group, which made fra 
name in precision measur- 
ing probes. 

Its first product. RC4, is a 
programmed hardware unit 


any machine using 
= P*«t 


it to- “ speak ” a specific 
of MAP called SmS, or manu- 
facturing message service. 
MMS deals with the shop4«£ 
tost ructions given to pro. 
dacron machines and is part 
of the^ .so-called "application 
Tyari T of the Internatio nal 
Standards Organisation model 
on which MAP Js baged. 

■The RCd arts as a transla- 
tor between MMS and a wide 
rw of existing production 
untts 1 . These might be 
machlM tools, robots or 
measuring machines, all nor 
.many using different com- 
®™<«»bn8 software proto. 


cols. With each machine con- 
nected to a local area net- 
work via its own RC4, the 
overall production central 
software then no longer needs 
to. be specific to each 
machine. 

The loud network & in turn 
connected to the MAP back- 
bone cable which communi- 
cates with other functions in 
the factory. 


Way to a cleaner 
drink ot water 


THE HEALTH hazard 
nitrates in drinking water 
be neutralised with a 
from Bruner of Roystox 
the UK. 

Able to fit easily inf 
standard kitchen cupbo 
the device uses an exchti 
resin system which redi 
nitrate concentration to 
than the European Com: 
slon guide level of 25 p 
per million. The remt 
nitrate is replaced with 
equivalent amount of hi 
tew minerals such 
chlorides aul btearbonati 


. Buses conducted 
by computer 

SCOTTISH COMPANY £u 
Plan Computers Is offerh 
system which enables 
companies to analyse ti 
■ operating i 

thoroughly, so m to « 
better, more efficiently 
services. 

Banning on t 

jwwptttey, (be 
tern is fed from a soiid-e 
data collection module of 
kind already Installed 
mam buses (the Way ft 
uUt for example). Them 
«wrd. tiie tore and a 
boarded for each parget 
getting on the bus. The 
suiting revenae and ttite 
used to pro 
hew t* 

•bdjne effect of dungs* 
existing ones. 


ewsa. Aiahi 

•jgvdW 8M6K. b 



L *• 


A^> 








■J 





i 


u _ 


Financial Times Friday May HZ 1987 


\1 \ l niv.i- 


S&XS&. 

■HU**': 


-if- 


~4- 







-m 




♦ 


4 * 


w 

Wherever it is, we II find it, 


fi 


't *• : 


A 


* f 


/ft 


% r A 

■ h > 

* A 


•*v -*<’ 


■ -i - 




' AA 

* 

■ .{*• .»v 

■' .v.-w.-Y 


i 1 ' 







£$ 5S 


S v>‘ 



* 













£ 














. ^ 








JV... ...... / • .V . • , . . 








V ; / 








< ' : : : :v f *' : 





•* ' ';ziy - 


'&.W; 








. : .>v-’ 


M 


•“/& •--•• *'.•* 

v“V' ’ ‘ 


>.y> 


: v ••••.' 'J 


v ; --r 




•- 








‘v. * 




' • ’: 


> r t 




■- f-£W$. 


■ A'.i- 


#S5 




- 




■ . v i.ljv -v 


•'vr 


:y 













A 1 - 




Vf- ■ 






LX. 


/% 


' : A ' 





=>K- 






■y 









•_s £*>>?»/ 


... -- -a ;• 


vi; 


-.vr. 


?*si 

<a .. 






sf 


;•« 


>' 


-•TT- 


*rf-, *>> 
->.? v 






•'•i •--.,,, -- 















"I 











OIL. Wherever it is, we’ll find it Oil 
is the primary source of energy. It is the 
power that moves the world and will be 
so for many years to come. 

But, it is necessary to be prepared to 
wrestle this treasure from the earth’s 
most secret strongholds, using the latest 
continuously evolving technology, and to 
venture into hostile, inaccessible places. 

Agip, Italy’s national oil company, 
took up this challenge sixty years ago, 
probing into the origins of the earth, 
experimenting with new techniques, and 
devoting to these activities human and 
economic resources that are always up to 
the difficulties to be overcome. 

Wherever the possibilities of finding 
oil exist, Agip is present with its spirit of 
initiative and decades of experience. The 
results achieved, alone or in cooperation 
with leading oil companies, in 30 
countries, on 5 continents, make Agip a 
reliable operator in any oil activity. 

Even where no-one has ever reached. 


'-r 

mm 

N&r’-* t 




K- 


<*T 







w 






r s 



/ 


■i 


/ 





Times Friday 




THE PROPERTY MARKET By paul cheeseright 



>E referee waits 
for the players 


IT HAS HAPPENED. The 
Stock Exchange has finished 
drawing up the rules for the 
new property market based on 
single buildings. It is now is 
the position of a referee in the 
middle of a playing field "won- 
dering when the players will 
arrive and what sort of game 
they will want to start 

There are two sets of players 
—the finance institutions, 
property companies and 
chartered surveyors which make 
up the 60-strong membership 
of the Fines (property income 
certificates) Association and 
the 50-strong membership of 
Barks hire Committee, with 
some overlap between the two. 

They are sponsors of the 
different investment vehicles 
which, theoretically from next 
Monday, could be brought to 
the market The Fines Associa- 
tion is behind the property 
income certificate ana Bark- 
shire is behind single property 
trusts and single asset property 
companies. 

The Stock Exchange has 
accommodated them both in one 
set of rules for a new market. 
These rides have had to take 
into account a different set of 
needs from those which cover 
normal equity trading. 

The regulators (had to drop 


their traditional notion that 
securities based on a single 
asset are too risky to be traded. 


THE NEW market has 
spawned entries lor the dic- 
tionary of market acronyms: 

Sapco: a single asset pro- 
perty company. It awns a 
bunding or group of build- 
ings. It can issue both equity 
and debt issues. 

Spot: a single property own- 
ership trust. It owns and man- 
ages a property. Unitholders 
share the rental income and 
the profits growth. With 
Capeo it is sponsored by 
Berkshire Committee. 

Pine: a property income 
certificate. Holders are en- 
titled to a share of building’s 
rental income and have a 
stake in the management com- 
pany set up for that building, 
but they do not hare direct 
title to ownership. It can be 
financed by equity and debt 
securities. It is sponsored by 
the Fines Association. 


They had to accept that with a 
single building, it was not much 
use looking for a five-year trad- 


ing record as a prerequisite for 
listing. 

As another example, the 
Stock Exchange dropped the 
normal role which requires that; 
with new securities worth more 
than £15m, there has to be an 
offer for sale. In the new mar- 
ket there can be platings up to 
any limit, provided the basic 
units are sot less than £25,000. 

The rules were worked out in 
conjunction with Barks hire and 
the Fines Association. It is up 
to them now to find the build- 
ings which can be offered to the 
market. It would probably take 
the Stock Exchange Quotations, 
Committee up to six weeks to 
process any offerings. 

Nobody expects the market 
to start with a rush. Indeed, 
Balkshire is stm in talks with 
the Trade and Industry Depart- 
ment and the Inland Revenue 
on the regulations supporting 
the Financial Services ACL The 
trust investment vehicle cannot 
be used until they are in place. 

A rough timetable for the 
development of the market 
could be : 

July: the first single asset 
property company securities 
start trading when Goldman 
Sachs and Baring Brothers offer 
preferred shares in Billingsgate 


T- 




iilife 


ilding to 






Kwrof tt le«ft 1H y«>n> An* it mart have a value « 




ULL 


7this /SA/*rdrOfW(F^^k; 
To 

\pr* TWe- srocAr ^ 
V gV&Wgg ; J 


» «r mi eases hhu»uuwiv> *■» ~~ — ^ 

fertile listing of equity 

SSSto «f debt to enuHy J* watidcrod bn t*e. 
tteeto be unacceptably h**b- / , jj tr Moats 

tier toe rates, tawrtw to » **wj*?*W*T®^^ 
tttiod to *H toe rental pay®**** 

delil wulrlTifi tax ana insurance »■ 
ns to n r afl oat estate management 


City Securities to investors. 
They are currently quoted in 
Luxembourg. Billingsgate City 
is a one^asset comp any, based 
on a London office boHding. 

October/November: the Fines 
Association brings perhaps 
three buildings to the market. 

December; the Trade and 
Industry Department settles 
the regulations supporting the 
Financial Services Act, opening 
the way to the introduction of 
single property trusts. 

1958: such trusts are intro- 
duced to the market 

All of that is the easy part. 
It is more difficult to estimate 
what will happen to the market. 
Prospective market-makers still 
have to show their hand, but 
in the early stages are expected 
to be the same bouses already 
active in the equity markets. 
Chartered surveyors may join 
in later. 


At the financial level, the key 
factor is probably to look at 
what happens to the Interest 
rates on gilt-edged static. The 
lower . they are, the more 
interesting pj j> exty 

securities are going to look. 

Mure fan ffarw- mn] thin that 
though is the fact that toe new 
market is supply-led, not 
demand-driven. It has been the 
property industry itself that has 
been pressing for a new market 
because it has been worried 
about lack of liquidity. 

There are few buyers for the 
large projects. Institutional 
interest has waned over the tost 
three years with fund managers 
much more concerned with 
short-term performance tout 
long-term holdings. So, if toe 
ma r ket could be broken up to 
trade in morsels of -buildings 
rather than complete properties, 
then outgoings need not be so 


large, costa would be more mro- 
age&bleand smaller intiftangny 
and, indeed, privat e InVna otf * , 
could be players in tfce b&uket. 

Whether this wfH happen 
remains to be acem-Slieto to 
evidence, in the grcwfrig 
membership of ■ the Ptocl 
Association and Berkshire Com- 
mittee of readiness to 'take toe 
possibiHtiBB seriously. . 

A final point Although the 
new market ptings from domes- 
tic needs.- it Is a further stop 
towards enhancing the interv 
statue of London *& a 
trading centre. The St ock Kt- 
change, by throwing . away its 
early inhibitions, is opening up 
London to the sort of trading 
that takes place elsewhere, most 
notably in the US. There ta no ' 
reason now why New York sky- 
scrapers cannot be quoted bn 
the London market: ‘ 


'55S&12S& » ft. r 

toe .rectal incom e there has to be hachl 

,ll, !S hair to be a vahothm of ike pwpytft 
en-BS t aiidmiiii a nit of what remdn might be 
fetofSStMtod a soBtitortreport on thei«*Jtitte «rt tho 
propufty. A Bmit has to be specified on the amount 
a&i rtfona bo rrowing* pmaitted without tho approval or 

^SfE^ie start. Once toe taJMtarhag ^J"***® 4 
tortoise market, annual reports will have to be p*®®*™ 
Tbexohm to be abuOffing survey every tone years. The 
mmidgen bare to keep a bunding log book. 

K there 1a an issue of sacaStta* tflir the 
apnreieeh to tte market, then there vUl have to be 
intfMeidont valuation, so that new investors can soo how the 
mari^Tvatae, as measured hy Stock Exchange trading: 
‘matcho* up to am outside assessment. _ 

. aMiiww reting hnb hunt be set to provide for 
I nve sto r control over capita] expenditure, changes to 
F raSAag iw finds k fdHm any material part ex toe property- 




OUTSTANDING VALUE FOR 
TENANTS AND OWNER OCCUPIERS 



«1 





• MERIDIAN GATE • 

An outstanding opportunity easts for forward 
looking companies to be partofthismixed 
scheme of high quality office buildings and 
smaller business units. 

Designed by international architects, SSC 
Consultants, Meridian Gate is situated in the 
Docklands Enterprise Zone, the most vibrant and 
advanced of London's waterdty developments. 

Phase One, currently under construction, offers 
outstanding value for money opportunity for 
entrepreneurial occupiers to purchase or to rent 


UNITS /SUABLE FROM 60W0.000 SQ. FT. 


ENTERPRISE ZONE FISCAL ADVANTAGES. 


100% CAPITAL ALLOWANCE. 


NO RATES LEVIED UNTIL 1992. 

DESIGN FLEXIBILITY FOR INDIVIDUAL NEEDS.' 
PRIME WATERSIDE LOCATION. 

DOCKLANDS LIFESTYLE. 

TWO MILES FROM THE CITY 

Enterprising businesses call Grants Partners 
now for foil details. 


.RANT 

' ^-PARTNERS 




London Docklands. The Emerging City. 


GLOUCESTER 


;1 i-1 ! *, 3, 1 1 M I 


BUILDING LAND 
FOR SALE BY TENDER 
9 ACRES WITH OUTLINE 
PLANNING CONSENT 
Situated on edge of the City 
Tender documents from 
sole agents: 

1 Queen 1 ! Circus 
Cheltenham GL50 1RX 
(0242) 239202 


STRATFORD-UPON-AVON 

WARWICKSHIRE 

Valuable fa ii o kl OwMpnini Site 
of i nww i to HormJror*, Bulldera, 
Oivdopira and Entrepreneur! 
SVAcm 

or thertabouta with Extensive 
Frontage and Access from A46 
Warwick to Stratford-upon-Avon Rd 
also Including IIS Acres of 
Amraity/Paature Land 
To bo Sold by Auction on 23 June 


AUCTION 

Li l wf <1 ii' j tw i ■ 



C OI.I.II.Kii 


HHAVOOH tsSwSj: 
vVI'.ia’. i ,w 


OFFICE BUILDING N.15 

SELF-CONTAINED 20,000 SQ FT 
Prominent location do*, to 
Sevan Sister* Tub. 
Central beating, lift, car park 
Immediate possession 
To be lot whola/part or freehold 
Agents retained: 

Swfflow Ltd, <2 Filey Avenue, 
NM 6JJ. Teh 01-BM 0M1 




11 LU 


- i i i i ' 

r n i«i A * i U,ii . ii» M j i ii tJmi i 


"mj i ii ]. ' 




M 'V. 


mm 




ON THE INSTRUCT10NS0F ALFA ROMEO (GB| LTD 


EDGWARE ROAD, STAPLES CORNER 

LONDON NW2 




TO LET OR FOR SALE 

HEADQUARTERS 

FACTORY/WAREHOUSE 

WITH SUPERB OFFICES 


o *■* iiiii H i 




01-629 9292 


mt a o o t an— m a Ndv os m . w n n o w wuvsao 




Shops and Offices 


OFFICES TO LET In Central London. 
Contact Bradlerx & JEcbbardt 01-437 
2571. Reference SPN. 


Land Required 


For Torthcr informolion confofl 
our Auction FVrvonnel. 


Eduuord 

Erdmon 




15 STRATTOIV STREET 


mAyfair London wi 


1 1^00 sq. ft Office Headquarters. 
Valuable Leasehold Interest tor sate ty Tendec 
FUll Yfccant Possession upon ccynpfetidn. 
Approx. 43 years unexpired at fixed ground rent 
Of interest to occupiers, developers and investors. 



EDWARD SYMMONS 




LONDON MANCHESTER LIVERPOOL BRISTOL 


^JVWftonRoarf 
^’"^SVWVlDH 

0*4348454 


We have substantial clients 
seeking to acquire 
(i) Property Companies 
(il) Property Portfolios 
£75,000 to £1,000,000 

RepliM in strietast confident, to M. J. Canoifaf^ AA1CS 


FINAL REMINDER 

54 PRINCES GATE, EXHIBITION ROAD, 
LONDON SW7 

A RARE OPPORTUNITY FOR OCCUPIERS 
AND INVESTORS TO ACQUIRE 
THIS SUPERB FREEHOLD BUILDING 
OF CHARACTER OF 
10,350 SQJFI 

IMMEDIATE CONTRACT AVAILABLE 
FULL VACANT POSSESSION 
OFFERS IN 7HE REGION OF 
£1,750,00000. 

APPfY50iJE AGENTS 


Chamberlain &WiHows 

Tel: 01-606 9611 Telex: 299161 

Ekton House, 2-3 EJclon Street, London EG2M7AR 


URGENT 

OFFICE REQUIREMENT 
on behalf of an embassy 
15,000-18,000 sq ft 
Central London-Fringes 

Please send details to: 
ref AWP/PJN 


ENTREPRENEIJR SEEKS 

PROPERTY PORTFOLIO/PROPERTY COMPANY 
UP TO £100m CASH AVAILABLE 

Replies to Box T6504 
Financial Times 

20 Cannon Street , London EC4P 4BY 





WOKINGHAM, BERKSHIRE 

AM Junction TO two miles: dose MSS 
LATE VICTORIAN MANSION 
IN GROUND5 OF AROUND 17 ACRES 
Approx. 11000 sq. ft. gross. Scape for extension, subject to pp. 
Potential for Guest House, Hotel, School, Institutional use. 
Nursing Home or Hospital. Possible Office /Training Centra HO. 
Offers Invited in excess of £750,000 for the Freehold. 
BANCROFT GROVES (Land A Commercial), 

High Street. Crawthonte, Berkshire, RG11 7 AH 
Tel: Crowthome (0344) 779977 


International Property 


Air-Conditioned Offices 
TO LET 

Including Ground Floor Banking Halt 


Contact Sate Agent 


Henry Davis Chy 

awwwMewcwjfrgiiaiiiBiiiB 


01 588 4433 W 




NEW YORK 
Park Ave A 50th Street 
WORLD CLASS RETAIL TENANT 
DESIRED FOR ONE OF TW 
WORLD'S FINEST LOCATIONS 
&SSJ sq ft. comar. will suit 
Financial, Rntaurant. Showroom or 
other ‘'AAA"' u*a 
Scia Uar on Its also available 
„ Inquire: 

A Fax - Teh ( 212 ) 2364077 



COMMERCIAL LAND INVESTMENT 
IN HIGH GROWTH AREA 
Participant aoueht Ipr nut 
tyndlems parehaee end eventual 
male. £18,000 down payment 
Full deuUx 

Foaraons London, la Qraftsn SI 
London W« 46X 





03MMERC3LAL AND BBSfiDENlIAL 


^wSmC aSSSS^! "imnliKm?®* * **** OwmwI Tan* 

A40IWO0. fcoteer, ^ 

Angel* Gore JUtalM* 

Mwwr, Btaa. * ^ 

























1 







: TS M ^ . 

^ W> ' J 
’ ' ' -V " 


Financial Times Friday May 22 1987 


FI NANCIAL TIME S 


Friday May 22 1987 


CONTENTS 



King Hussein is striving 
hard for a settlement of 
the Palestinian problem 
that will satisfy the Arab 

worid and ensure the 

future of his own realm. He a lso needs 
peace with Israel, as well as an end to 
the Gulf war, to revive economic 
growth, Richard Johns reports. 

Predicament of 
a brave monarch 


NEXT month will mark the 20th 
anniversary of the June War in 
which King Hussein lost half his 
realm' and the greater part of 
Jordan’s economy in a war not 
'offals own making but with near- 
ly disastrous consequences for 
his throne. It is still debatable 
■whether the imperatives of 
lArab solidarity and his own 
[survival made it absolutely 
[necessary for him to engage in 
the conflict in support of Egypt 
i Two decades later the ques- 
tion may also seem an academic 
;one. But it is still very relevant 
to the Hashemite Monarch's 
[present predicament and 
perplexity as he strives to bring 
■about the convening of an inter- 
national peace conference on 
the Middle East under the aegis 
of the UN Security Council. 

Jordan’s intensive diplomatic 
activity over the past year and 
secret contacts with Israel mark, 
a resumption of efforts, which 
went into limbo fora while after 
the rupture with the Palestine 
Liberation Organisation in 
February 198ft, and {failure to 
grasp what as long ago a a 1984 
King Hussein described as “ the 
last chance ” for peace. King 
[Hussein knows that any conceiv- 
able deal would be tfar from 
adequate from, the point of view 
of the Palestinian Inhabitants of 
the o c c u pied t er r itori es and the 
wider Arab weald. The chal- 
lenge for him is to salvage what 
Ja possible!# the fece of creep- 


ing de facto annexation and 
remorseless Israeli pressure on 
the indigenous population of, 
the West Bank to emigrate. 

Neverless, Sing Hussein feels 
-that he has no choice but to 
pursue a settlement even 
though he is still bound by the 
1974 Arab summit resolution 
recognising the FLO as M the 
sole legitimate representative 
of the Palestinian people. Deep-' 
seated dynastic feeling is one 
fundamental reason for this. As 
a direct descendant of the 
Prophet, a lineage from which 
his legitimacy largely derives, 
he felt humiliation at the loss of 
Jerusalem, site of Islam’s third 
holiest shrine, a shame made 
worse by the feet that the 
Hashemites were ousted from 
Mecca and Medina by the 
Saudis inthe 3920s. 

The biggest practical con- 
sideration is the feet that any- 
thing from a half to two-thirds of 
the East Bank’s population is of' 
Palestinian origin. This major- 
ity does not constitute a 
homogeneous group and con- 
siderable assimilation has 
taken place. However, there is a . 
constant, unarticnlaled ■ 

apprehension that, with the pas- 
sing of time and under con- 
tinued Israeli pressure, the 
Palestinians might once again 
come to see— as they did in 
1070— the East Bank as a substi- 
tute homeland and state under 
their leadership and not the 



New 5-year economic plan must Fort! User Industry on profits 
mobilise domestic savings 2 traB 


Financial aid to West Bank to 

stow migration 2 

Agriculture: state Intervention 

Economy rides out the re gio nal pays off 4 


recession 


Government seeks stronger 
financial services 
institutions 


lack of tourism stra tegy 
3 hampers growth 


The old quarter of Amman, Jordan’s capital and Industrial and commercial centra. 


Hashemites, an outcome the 
Likud and Mr Ariel Sharon, the 
leading Israeli hawk, in parti cu-' 
lar would be only too happy to 
work towards. 

The February 1985 accord be- 
tween King Hussein and Mr 
Yassir Ararat, Chairman of the 
FLO, on a joint Jordanlan- 
Palestlnian delegation, to 
.negotiate a settlement aimed at 
the establishment of a confeder- 
ated state, removed the con-’ 
straints on the monarch im- 
posed by the pan-Arab decision 
in 1974. A year later Sing Hus- 
sein suspended the agreement 
in exasperation because Mr 
Arafet did not fulfil his pledge 
to accept publidy UN Security 


Council resolutions 242 and 338. 

The FLO’S formal abrogation 
of the accord last month and the 
price of the reunification of the 
movement— especially . the 
'reaffirmation of the commit- 
ment to armed straggle and the 
reiteration of the demand for an 
independent Palestinian state—- 
must, by any rational analysis, 
be seen as a blow to the "peace 
process”. It may be that the 
chances of Israel, even with 
Likud in eclipse, ever having 
any dealings with even a re- 
formed PLO, accepting its exist- 
ence and renouncing terrorism, 
are non-existent The feet re- 
mains that the majority of the 
inhabitants of the West Bank 


and Gaza Strip support Mr Ara- 
fet, even if he Is politically and 
militarily incapable of alleviat- 
ing their plight. 

The terms of whatever under- 
standing on an international 
peace conference have been 
reached by King Hussein and 
Mr Shimon Peres, the Israeli 
Foreign Minister and Labour 
Party leader, are likely to re- 
main obscure for the time being, 
the subject of denial in Amman 
and perhaps disinformation in 
Jerusalem. They may prove 
irrelevant given the stance of 
the Likud, Labour’s right-wing 
partner in the Israeli Coalition 
Government 

For his part, the monarch has 


resisted Israeli appeals and US 
pressure to negotiate directly, a 
coarse of action which would 
probably be tantamount to 
political suicide. The Jordanian 
leader clearly regards an inter- 
national conference as a 
framework for negotiations 
rather than an “ umbrella.'’ Am- 
man is formally insistent that 
the PLO should be invited but 
presumably, with the proviso - 
that it accepts UN resolutions 
242 and 338— which in practice 
would preclude the PLO’s 
attendance. 

Maximum pan-Arab blessing 
or at least a large measure of 
acquiescence would "Be re- 
quired for Jordan to start peace 


talks and the King could prob- 
ably not contemplate them with- 
out Syrian participation. That 
would involve an Arab summit, 
which would be the first since 
the last emasculated one at 
Casablanca in 1984. 

Jordanian diplomacy has suc- 
ceeded to the extent that its 
only avowed enemy in the 
quarrelsome community of 
Arab states is Libya. Of particu- 
lar significance was the 
rapprochement with Syria, 
achieved in the summer of 1985 
after five years of bitter 
antagonism which has enabled 
King Hussein to attempt to 
mediate — what would be a mira- 
cle in regional politics — a re- 
con eilat ion between Iraq, which 
he has steadfastly supported in 
the Gulf conflict, and Syria, 
Iran’s main Arab ally. 

Fortifying Iraq’s position in 
the war was the King's prime 
consideration when he tried to 
bring the two Baathist regimes 
together a year ago. Now he 
would see a reconciliation as a 
prerequisite, as well, for a 
successful meeting of Arab 
leaders which could clear the 
way for an international peace 
conference. 

Hamstrung on the peace issue 
by the internecine divisions in 
the Arab world and fearful of an 
Iraqi collapse on his eastern 
front with all such a develop- 
ment might mean for the spread 
of Islamic fundamentalism, the 
West's most consistent Arab ally 
has been devastated and disillu- 
sioned by the revelation of US 
arms sales to Iran. 

Moreover, the US administra- 
tion has, over the past two years, 
failed to overcome congressio- 
nal opposition to sales of mod- 
em aircraft, missiles and other 
equipment, badly needed to 
maintain the credibility of Jor- 
dan's military defences. It has 
also cut back financial assist- 
ance. And its support for an 
international conference has 
been vety much less than 
wholehearted, especially on the 
question of a Soviet role which 
is essential if Syria is to be 
involved meaningfully. 

The regional and inter- 
national imbroglio in which Jor- 
dan finds itself are related to 
the country’s internal stability 
which, in the last analysis, mast 
be King Hussein's prime con- 
•cem. His^ well : trained,_well- 
treatecT, ~ military ""and security 
forces— accounting for a fifth of 
Jordan's manpower and 25-30 


per cent of the current budget- 
are sufficient guarantee of law , 
and order. 

As it is. despite the regional 
tensions, a reassuring tranquil- 
ity currently prevails in what 
must be regarded as the best 
governed state In the Arab 
world. 

The regime is a benign auto- 
cracy with a good human rights 
record despite very grave past 
or potential threats against it. 

A ban on political parties 
from which only the Moslem 

Brotherhood was exempted re- 
mains technically in force but in 
practice activity of some opposi- 
tion groups including an in- 
effectual Communist Party is 
tolerated. 

Yet for such a sophisticated 
stable country the system of 
consultation could be improved. 
The present elderly Parliament 
is a moribund institution though 
not totally useless as a forum 
where grievances are aired and 
criticisms made. It consists of a 
Lower House of 60 members, 
split equally between East Bank 
and West Bank representatives, 
and a Senate of 30 appointed 
members. The Upper House 
elected in 1967 and suspended 
in 1974 because of an Arab sum- 
mit decision, was reconvened in 
1984 after the lung's rapproche- . 
ment with the PLO with de- 
ceased members' seats filled af- 
ter lively by-elections in which 
the Moslem Brotherhood did 
welL 

A new electoral law passed in 
1986 provides for 142 with the 
same equal division with West 
Bank candidates having to have 
originated from across the Riv- 
er Jordan. Registration of voters 
took place this month. But it is 
still by no means clear whether 
elections under the law will be 
held when the fourth national 
five-year term of the present 
house expires in the autumn. 
That could depend on progress 
towards the international con- 
ference. 

While that could prove a 
chimera, the economic chal- 
lenge feeing Jordan is a daun- 
ting one. If Jordan is to get even 
close to its growth objective it 
will mean a fairly painfiil switch 
from consumption to savings. At 
the same time its chances of- 
success would be immeasurably 
enhanced by greater stability in 
the region, not the least a settle- 
ment of the Arab-Israeli conflict 
and an end to the Gulf war. 



GENERAL MANAGEMENT SHMEISAN1 , AMMAN 
P.O.Box 950544 _5 .Telephone; 660131, 660115 Telex: ARABNK Jo 23091 








16 


Financial Times Friday May 22 1987 


( JORDAN 2 ) 


Economic planning 


New 5-year plan must 
mobilise savings 


FINALLY, and somewhat 
‘belatedly, late last summer Jor- 
dan's five-year plan for the 1988- 
90 period was authorised. One 
reason for the delay, apart from 
uncertainties about oil prices, 

P ; a long exercise in consulta- 
i aimed at ensuring that all 
toral interests — economic, 

ial and regional were taken 
i account The process 
involved a 500-member general 
{assembly with 24 committees 

C ider its aegis. The approach 
as politically laudable but not 
{perhaps the best basis for a 
1 tightly co-ordinated plan 
focused on key objectives. 

If aims to raise Gross Domes- 
tic Product from i-36bn Jorda- 
nian dinars i$4.05bn) to JD 
1.74bn and per capita income 
from JD 695 ($2,071) to JD 
;"739.'TBe average annual growth 
rate projected is 5.1 oer cent 
More comprehensive than any 
of its predecessors and drawn 
up nnder the very active patron- 
age of Crown Prince Hassan, it 
is also regarded by all develop- 
ment agencies, not the least the 
Arab funds, as ambitious. That 
(compares with an achievement 
during the 198085 period of 4.2 
per cent when nearly all the 
aggregate was achieved in the 
Ifirst two periods before the 
{deterioration in the regional 
economic environment and the 
tightening of the constraints on 
uordan resulting from the reces- 
sion in the Gulf 
Even on the most optimistic 

E sumptions about workers' 
mittances and Arab aid— the 
□unitments made to the Bagh- 
jdad summit expire in 1988— 
sustaining a growth in the range 
of 4-5 per cent annually would 
reqnire a substantial external 
borrowing requirement in the 
view of the World Bank. 

. It calculated towards the end 
of last year that Jordan's debt 
service ratio could rise to 23 per 
bent by 1993. 

The plan is very much an indi- 
cative one in its expectation of 
the contribution from the pri- 
vate sector. Including important 
mixed entities like the Jordan 
Phosphate Mining Company, it 
is projected to contribute JD 
■L48bn. or nearly half the total of 
JD S.llbn investment planned. 
Moreover, the Government is 
looking to the private sector to 
provide JD 550.1m, or 80 per 
cent of the JD 687m target set for 
the all-important commodity 
(producing sector where the big- 
gest growth is sought, 
i The pattern of investment in 
the past is not encouraging. Dar- 


ing the boom days the Jordanian 
private sector concentrated pri- 
marily on construction, trade 
and transportation, just as Gulf 
money went into real estate and 
financial services. For some 
years the country has had a 
negative domestic savings rate. 
In the 1982-86 period, gross 
fixed capital formulation 
declined by an average of 7.5 
per cent annually while con- 
sumption expenditure rose by 
3.6 per cent At the same time 
the service sectors grew, with 
public administration and the 
armed forces leading the way — 
the latter accounting for 25-30 
per cent of current spending— at 
the expense of the productive 
sectors (including construction, 
electricity and water) which last 
year accounted for only 36.7 per 
cent of GDP. 

Yet Jordan has little choice 
but to set a growth target in the 
region of 5 per cent growth. It 
has a high birth rate of 3.7 per 
cent and a large increase in the 
supply of labour immediately in 
prospect. Half of the population 
of 2.7m is under the age of 15 
and about lm are still receiving 
education. Jobs must be found 
for 200,000 from 1986 to 1990 at a 
time when unemployment is 
put, perhaps conservatively, at 
40,000 during a period when It is 
estimated, perhaps optimis- 
tically, that only 25,000 workers 
will return from abroad. 

Planned investments are 
aimed at creating nearly 100,000 
new job opportunities. 
Repatriation of 50.000 of the 
120,000-150,000 foreign workers 
in the Kingdom (mainly Egyp- 
tians doing menial tasks 
unpalatable to Jordanians) and 
their replacement by Jorda- 
nians is anticipated. Then, after 
making allowance for natural 
wasteage and emigration there 
would still be — on the best 
assumptions— a net increase in 
unemployment 

Moreover, the university and 
high school system — geared in 
the past to preparing a surplus 
of trained brains for export— is . 
still producing too many qual- 
ified ueoule for Jordan's needs. 
Already unemployment among 
professionals is said to be 
about twice the national 
average. 

The present Jordanian Gov- 
ernment and, indeed, its prede- 
cessor have been well aware of 
the need to adjust the educatio- 
nal system to the requirements 
of the country's economy and 
development in the post-boom 


era. In this respect the plan 
reads less— than— convincingly, 
however. And for practical pur- 
poses a fundamental re -orienta- 
tion. bringing supply and 
demand into better balance 
could only make itself felt for 
the good of the economy in the 
next decade. 

Mr Taher Kansan, the Minis- 
ter of Planning, is confident that 
market forces will persuade 
people to take humbler, less 
well-paid jobs than they would 
like. " Unemployment will have 
its own dynamics," he says cit- 
ing the case of a graduate of his 
acquaintance working as a 
janitor. 

Essential to the overall objec- 
tives of the plan is the com- 
modity-producing sector, mean- 
while. This has been dominated 
by natural resource base indus- 
tries — phosphates, potash, 

fertilisers and cement— which 
have received the lion's share of 
public investment in the past 
and account for 60 per cent of 
manufacturing and mining 
output 

The Shed iy ah phosphates 
deposits are being developed 
with the aim of bringing the 
mine into operation in 1988-89 
and potash production is being 
increased. Yet though they will 
continue to be of vital signifi- 
cance for the economy* the 
scope for expansion of existing 
natural reource based indus- 
tries seems limited. Jordan has 
other minerals, notably copper 
and magnesium, but there 
seems no prospect of them 
being exploited in the foresee- 
able future. 

One of the most pressing 
needs is to discover and exploit 
the oil resources which the 
country probably has in com- 
mercial quantities. The cost of 
oil imports in 1980-85 period 
exceeded the value of all Jor- 
dan's imports. Output at present 
is limited to the 1,000 barrels or 
so a day, produced from the 
three wells of the tiny Hamzeh 
field. 

Hopes of discovering oil in 
substantial quantities have 
risen with the interest shown by 
the three companies— Amoco, 
Hunt Oil and, recently, Petro- 
fina — which have signed pro- 
duction-sharing concession 
agreements. Mr Hlsham al Kha- 
tib. Minister of Energy and 
Natural Resources, explains 
that in the past there were 
“ misconcepts about the coun- 
try's geology ” and too little was 
done to promote its DotentiaL 



One of the main thrusts of the 
plan, meanwhile, is towards 
developing small and medium 
export-orientated or import- 
substituting industries. The pri- 
vate sector has been offered a 
comprehensive array of incen- 
tives. But aid officials say that 
high costs, low productivity, and 
depressed markets of the 
region, bureaucratic proce- 
dures and a high exchange rate, 
constitute a formidable barrier 

to investment _ 

ir We diff not expect the private 
sector to react too quickly." says 
Mr Raja al Muasher, Minister of 
Trade and Industry. There has 
been an nnderstandable cau- 
tion, he points out, because 
some entrepreneurs, who 
invested during the boom years 
saw their plants come on stream 
just as the regional recession 
set in and demand at home 
began to stagnate. Industrial 
companies have accounted for 
the majority of shares traded on 
the Amman financial market in 
this year's trading flurry. “Most 
of t hem have been able to d islri- 
bute reason tie prbtiis. ,r He says. 
A survey is being undertaken to 
identify the best opportunities. 
Yet with industrial production 
in 1986 up only L4 per cent 
progress is lagging well behind 
ihe_ plan's aspirations. 

Jordan desparately needs to 
achieve greater self-sufficency 
in food with its exports of winter 
fruit and vegetables worth JD 
41.9m from the Jordan Valley 
last year only covering one 
quarter of JD 165.5m import bill. 
In the 1980-85 period the sector 


its scope constrained by limited 
water and cultivable land, 
nearly reached its growth target 
and the private sector actually 
exceeded the investment 
expected of it, while the govern- 
ment's fell short by over a half 
Incentive prices and subsidies 
had much to do with that— the 
price paid farmers for wheat is 
the equivalent of $360 a tonne, 
four times the world market 
price. As it is, the main emph- 
asis will be on developing 
cultivation of the rain-fed high- 
lands and. in particular, the 
Zarqa River catchment area. 
Work is proceeding on no less 
than nine dam projects at a pro- 
jected cost of JD 639m in line 
with the goal. 

The big question mark han- 
ging over the plan is the extent 
to which the Government can 
mobilise domestic savings. Tbe 
alternatives, monetary expan- 
sion or excessive borrowing 
abroad, could ultimately sub- 
vert future growth. The plan is 
also criticised by development 
economists as being insuffi- 
ciently policy-orientated, a 
result perhaps of the consensus 
process involved in its formula- 
tion which produced a docu- 
ment designed to satisfy every- 
one. And implementation, it fo 
feared by sympathetic obser- 
vers. could be distorted by 
powerful vested interests, the 
big established businessmen 
and leading families, when it 
comes to granting permits, 
authorisations and incentives, 
especially in the industrial 
“ctor. . Richard Johns 



Explore 


I f you're considering business 
in the Arab world, talk to The 
British Bank of the Middle East first. 

As part of the HongkongBank 
group, we have over a century's 
international banking experience in 
opening up new markets. 

Our Business Profiles on Arab 
countries, which corae as a direct result 
of intimate market knowledge, are only 


one example of the many specialist 
services that we provide. 

Today, with more than 1 J200 offices 
in 55 countries, concentrated in Asia, 
the Middle East, Europe and the 
Americas, the HongkongBank group 
gives you access to a complete range of 
financial services. The group's presence 
also extends to Saudi Arabia and 
Egypt, through its associate banks. Tbe 
Saudi British Bank and Hongkong 
Egyptian Bank S.A.E. 

For a copy of the Business Profile 
that interests you, write to us at Box 64 
G.P.O. Hong Kong, or any branch of 
The British Bank of the Middle East. 


The British Bank 
oftheMiddieEast 

Bahrain India Jordan 
Lebanon Oman Qatar Switzerland 
United Arab Emirates 
United Kingdom 

<x> 


Fiieon Home. ISC Cunaa Sum. Loadoa WtY IAA.Td:0l-49M33l.7 • I9S BcunpWJEMtf. London SW3 ILZ. TcL' 01-51 14U2M 


Occupied territories 


Easing West Bank plight 


JORDAN'S development plan 
for the occupied territories has 
been interpreted by . many 
observers, too cynically, as 
being primarily aimed at com- 
peting with the influence of the 
Palestine Liberation Organisa- 
tion on the West Bank and in the 
Gaza Strip following King Hus- 
sein's rupture of relations last 
year with Mr Yassir Arafat, the 
FLO chairman. 

The FLO's hostility to the 
programme, and the measure of 
Israeli acquiescence In its 
implementation, might teem to 
indicate that undermining alle- 
giance Is the main considera- 
tion behind tbe plan. 

It is made up of a multiplicity 
of projects and based on the 
aspiration of an expenditure of 
just over $S00m — a figure scaled 
down from the even more 
visionary $L3m originally con- 
ceived. 

1 Tbe plan is also very much 
about humanitarian concern for 
a population whose living stan- 
dards have lagged', drastically 
behind those enjoyed on the 
East Bank. Even more relevant 
‘are hard-headed considerations 
about the increasing pressures 
on the young to emigrate from 
the West Bank and the Gaxa 
Strip at a time when unemploy- 
ment In Jordan is threatening to 
become a serious problem. 
Amman has been paying the 
salaries to public employees in 
its pay on the West Bank prior to 
the June War of 1967 ever since 
the occupation. Through deaths 
the number has declined to 
&000 but the bill still costs the 
Government T7m JD QSiAo) a 
year. 

Mr Marwan Doudln, Minister 
of the Occupied Territories 
Affairs, describes it as “a plan 


may be very 
limited but also that actual 
expenditure on projects 
designed to alleviate the plight 
of Arabs in the occupied terri- 
tories might be confronted by 
all kinds of administrative 
impediments. 

In addition, it supplements 
the salaries of nearly KkOOO 
teachers appointed by the 
Israelis to the extent of about 
JD4M annually. “We hate to 
have to do it but must because 
the occupying authority Is not 
fair in paying these people 
much less than they pay their 
own teachers and Israeli Arab 
teachers, 0 says Mr Doudln. 

From September 1967 to the 
end of 1984 the Jordanian 
authorities calculate that net 
Immigration from the occupied 
territories was 274,800— 15&900 


from the West Bank, 22^00 from 
East Jerusalem and 96,000 from 
the Gaxa Strip. The annual out- 
flow average SgOOO between 1969 
and 3974, quadrupled to about 

20.000 between 1978 and 1981 
and dropped by 10.000 from 1982 
to 1984. 

The number of Palestinians 
working - on the West Bank 
(excluding east Jerusalem) and 
in the Gaxa .Strip — about 

150.000 — Is reckoned to have 
marginally declined in this 
period. But from 1970 to 1984 
those working In Israel 
increased from 30.600 to 90,300, 
according to tbe Jordanian 
statistics. 

In the meantime, discrepan- 
cies in living standards between 
the West and the East Banks 
have widened- Per capita 
income was equivalent to 70 per 
cent of that in the West Bank In 
1978 but had declined to 61 per 
cent ini 1884 The figures for 
investment show the same trend 
■towards a growing imbalance. 

•; Per capita capital formulation 
on the west Bank was put at 87 
per cent of that of the East Bank 
hut had fallen to 48 per cent by 
1984 

Creation of employment 
opportunities Is the most urgent 
priority with 60,000 new 
entrants into the labour force 
easpecfedln t&e 1988-00 period. 
A related objective is to stimu- 
late the growth of local contrac- 
tors whose activity has been 
curtailed by the Israeli occupa- 
tion and also gives a spur to 
Palestinian entrepreneurs In 
the occupied territories. 

The sector singled out for the 
biggest single investment, at 
JD 164m, is housing, which is 
'regarded as critical for * keep- 
ing Arab inhabitants tied to 
■their homeland.* It U estimated 
'that at least 2,400 residential 
units are required. In terms of 
projected expenditure, educa- 
tion is tiro second priority witii a 
total of JDTtMhn, including 
JD 2Sm for the universities and 
dD 248m for the teachers' sup- 
port fond. 

Agriculture, with an alloca- 
tion of JD Gan. is seen as of 
crucial importance as the sector 
“ most adversely affected by the 
Israeli occupation," leading to 
the greatest pressure on people 
to leave as the Israeli takeover 
of land and water reso u rces has 
severed their links with the 
land. To rerive industry,: whose 
share of the territorimfGDP Is 
said to have Gillen hr half to Y 
per cent, the expenditure envis- 
aged would go mainly to estates 
and a credit fond offering 
medium-term finance. 

“Implementing a develop- 


ment programme in P art «f 

SSmuyunder occupation « not 

aue*S task at ill." Mr P»ud«« 
comments. The initial appw^ “J.J 
is tentative and 
want to prove how much 
spend on the West Bant ■ 
reasonable studied 
explored areas." the minister 
says. “It is on the basis of »•■** 
success in this initial phase Jut 
we will be applying for extra 

“IS?* Start the Jordanian Gov- 
ernment has allocated $30m fo- 
1088 and 1987, which ss *»»* 
being disbursed for the first 
projects. The money is fltsxn- 
bowd to nine conmntt*** 

•responsible for implementation 
— based on tbe main municipa- 
lities covering Jerusalem. 
Jenin. Nablus, Tulkarem. 1 a i- 
Idlya. Rasnaliah, Jericho, Beth- 
lehem, Hebron and Gaza. 

The main channel releasing 
the money will be the branch u. 
the Cairo-Amman Bank opened 
in Nablus last year. The hope is 
that authorisation for the open- 
ing qf more branches will be 
given. So for at least the Israeli 
authorities do not appear to he 
thwarting the early, hesitant 
implementation or the plan. Mr 
Taher Kanaan, Minister of run- 
ning, even goes so for as to say 


that they like what has been 
taking place and welcome pro- 
jects which relieve them of 
responsibility- Exploitation of 
water resources, meanwhile, 
remains an exclusive Israeli 
preserve. 

Availability of finance seems 
very problematical. Existing C5 
commitments amount to $li.5tn 
and Jordan is taking about 530m 
In. aid from Washington for the 
next American fiscal year but 
can hardly expect to receive the 
5250m for the frill five-year 

g eriod originally requested 
m*» contributions have been 
made by West Germany, the I'K 
and France. Recently the old 
joint Jordanian-Palestinian 
committee responsible for and 
to the territories, received 59m 
from Saudi Arabia, tbe last 
instalment of money pledged for 
the 1978-85 period by it and 
other Arab oil states at the 
Baghdad summit following the 
Egyptian-Israeli peace treaty. 

Payments were to have run at' 
glOOm annually but the total 
paid over the period was no 
mote than about 5450m, accord- 
ing to Mr Kanaan. It is sad, as 
Jordan sets about a reasonably 
coherent plan to stem the flow 
of emigrants, that bounty Grom 
tbe Gulf is not available in its 
old abundance. 

Richard Johns 




THE HASHEMITE KINGDOM OF JORDAN 

US$150,000,000 

Medium Term Dual Currency Loan Facility 


Uad Manogtd By 


Arab Bank Limited (Arranger) 
Al UBAF Banking Group 
B organ Bank SAX 
Manufacturers Hanover Limited 


Credit Lyonnais 

GrindJbtys International limited 

(A member of the ANZ Group) 


Co-Lead Manogod By 


Alahli Bank of Kuwait K.S.C. 
Arab Banking Corporation (ABC) 
. Gulf International Bank B.S.C. 
Standard Chartered Bank 


Banqnc Nationals de Paris 
Indossez Group 


Arab Jordan Investment Bank 


as— » IU, 

iraMRjyuu ujr 

Saudi International Bank 
AUmkAtSndiAI-Ak^LWfcd 

Co-Manc fl odBy 
Sociiti Gincralc 


National Bank of Abu Dhabi 


Arab Bank Limited-OB U-Bahrain 
Arab Banking Corporation (ABC) 

Gulf International Bank B.S.C. 

Standard Chartered Bank 
Banque Nationals de Paris 

Union de Banques Arabes et Francaises 
— UJLA-F. Bahrain Branch 
Saudi International Bank 

Al-Baak Al-Saudi Al-Alami tJmfowi 

Banque Indosuez, OBU, Bahrain Branch 
National Bank of Abu Dhabi, Abu Dhabi 
Credit Industrial et Commercial de Paris 
UBAF Bank Limited 
Banque de L’Uaion Europtenne 
Kuwaiti-French Bank 


Provided By 


Alahli Bank of Kuwait K.S.C, 
Burgan Bank SA.K., Kuwait 
Manufacturers Hanover Trust Company, New York— -1BF 

Credit Lyonnais 
Grindlays International Limited 
(A member of the ANZ Group) 
Al Bank A] Saudi Al Fransi 
(The Saudi French Bank) 
Arab Jordan Investment Bank, Amman— Jordan 
Soddti G6n£rale, Bahrain 
UBAF Arab American Bank 
(Hong Kong) Limited 
Banque Internationale Pour L’Afrique Ocridentalc 
UBAJE Arab German Bank 
Soddti! A&osjnnc 


Currency Agent 

Australia and New Zealand Banking Group Limited 
Arab Bank Limited 

OBU, Bahmin 


March 1987 


) 









Financial Times Friday May-22 1987 


( JORDAN 3 ) 


17 


| Balance of payments j 

(K» 

1981 

1982 

1983 

1984* 

1985" 

Jan- Sept* 
1986 

JBrvSept* 

1987 

Ekpoit* 

Imports 

Hoc Mam - 

242.62 

1.046.36 

-803.74 

264.53 
i. 141.12 
-876.59 

210.59 

1,101.96 

-891.37 

290.66 

1,257.95 

-967.29 

310.89 

1.072.51 

-761.62 

228.83 

794.08 

-565.25 

179.61 

63220 

-452.59 

Sorrlcos (inQ 
of wMctu HomWaiicos 

359.25 

340.89 

385.03 

381.87 

455.12 

40230 

395.64 

475.00 

346.71 

402.92 

284.71 

307.94 

252.55 

330.84 

IImvWM frawhti (oat) 
of wtnflhs ttomuBMt £ntribi 

430.80 

415.33 

373.29 

363.72 

294.93 

289.56 

278.76 

261.70 

315.01 

291.18 

233.05 

215.73 

170.38 

155.39 

ItlonoB ob cuiroul account 

-13.69 

— 11527 

-141.32 

-104.13 

-99.90 

j -47.49 

-29.66 

Capital amount 

Ooasmmut (aat) 

Rocolpts 

Payments 

69.04 

13.21 

(318.21) 

(295.11) 

113.40 

92.57 

(316.19) 

(223.62) 

156.76 

145.88 

(315.64) 

(169.76) 

64.37 

35.47 

(287.40) 

(251.93) 

137.64 

127.99 

(352.12) 

(224.1 3) 

71.62 

71.18 

(269.02) 

(197.84) 

81.03 

57.56 

(206.74) 

(149.18) 

Private lavastmont (not) . 

46.82 

20.83 

1058 

28.90 

9.65 

0.44 

23.47 

Now anon and omissions 

-4JL31 

-57.49 

+34.86 

-29.54 

—19.25 

-30.58 

-67.66 

fomraK balance 

56.56 

-4.87 

15.44 

-39.76 

37.74 

24.13 

51.37 

roraigu sntangs imanest 

353.87 

291.29 

296.61 

202.31 

146.62 

- 154.85 

125.72 

Soofc*: Contra! Bonk of Man atatMka. 

* Preliminary. ; 

t End of periods. 





The economy 


Riding out the 



recession 


•DURING THE first four months 
of this year the volume of trans- 
actions on the Amman Finan- 
■cial Market, Jordan's well-orga- 
nised and. healthy stock 
exchange, exceeded the total 
for the whole of 1988. Peak activ-. 
ity of 1983 looked as if it will be 
surpassed. The flurry. Including 
not a little speculation, was trig- 
gered off by a cut in interest 
rates in November and a 
realisation that some shares 
were much undervalued. 

But it did also reflect a mea- 
sure of optimism about econo- 
mic prospects which was also 
encouraged by a deliberately 
reflationary budget for 1987. 

The general mood is one of 
.cautious confidence abont Jor- 
l’s ability to continue to with-: 
id the recession in the 
(region, particularly the Arab oil 


producing states of the Gulf on 
which Jordan’s own economic 
well-being so vitally depends. 
The measure of optimism, in the 
'absence of any promise of a 
recovery of oil prices to the 
level reached in 1980, stems 
from the country’s success in 
li m iti n g the damage to the point 
that it has managed to maintain 
a marginal rate of growth over 
the past four years, albeit one 
lower than a high population 
increase of about 3.7 per cent 
might otherwise have gener- 
ated 

'Growth of 2.6 per cent was 
claimed last year, according to 
.provisional official statistics. 
Some economists doubt that it 
was as high as well as the zero 
inflation shown by the govern- 
ment indices. Any rise in prices 
was negligible, though. Jordan's 


Financial services 


Government seeks stronger institutions 


JORDANIAN and foreign banks sheet rising a healthy 9.6 per 
turned in a steady performance cent last year to JD&99Zbn (JD 
last year in terms of profiUtbil- [Jordan dinar] = £3X A tradition 
ity god balance sheet strength; of decades of conservative local- 
given the four-year-old regional management and' relatively 
recession and the economy’s strong Central Banksupervision 
persistent vulnerability to has largely shielded Jordanian 
political events, economic banks from the sharp swings in 
trends and financial flows {profitability and dividend pay- 
originating outside its borders, outs experienced by many 
The Jordanian financial sec- banks in the Gulf region. 

-tor was characterised last year Slower economic growth since 
•by several developments, most 1664 (GDP at market prices grew 
notably: by 2.5 per cent last "year) 

• New Central Bank of Jordan reflected reduced Arab aid 

leadership. grants, and flat remittances and 

• Across-the-board realisation exports, which in turn curtailed 
that the reduced good lending government spending and 
opportunities and the rising squeezed liquidity among many 
number of doubtful or non-per- private sector companies. 

Banks have felt the effect of 
this recessionary cycle in the 
form of more problem loans, 
which the Central Bank esti- 
mates at less than ten per cent 
of all outstanding commercial 


the Central Bank for the past 18 
months to classify assets and 
identify problem loans, accor- 
ding to a uniform loan clas- 
sification system. 

’ This has coincided with the 
assumption of power by the new 
Central Bank management team 
of Governor Hussies Qasim and 
Deputy Governor Dr Maher 
Shukri, both of whom had con- 
siderable previous Central 
Bank experience. 

The Central Bank has 


dropped the ceiling on interest ability to provide medium-term 
paid on deposits and loans by financing for industrial pro- 
one per cent, totally floated jects. The government would 
interest payable on deposits of like to see more bank lending to 
over JD 200,000, and allowed corporations and productive 
h ank’s to set their own minimum ventures, and has talked about 
interest rates on deposits. -providing Incentives tor venture 
'Only a tow banks responded— capital schemes, 
as the government had an tier- The collapse last year of the 

pated— because of the low infla- second biggest money changers 


tion and lack of good new 
borrowers. 

Bankers would like the gov- 
ernment to free interest rates 


adopted a very wise policy of yet further, in order to encour- 


detailing aU individual bank age an interest rate structure the local finance scene, but has 


forming loans engendered by 
the recession would have.to be 
dealt with for several more 
years to come. 

-•The collapse of the highly 
respected Rizk family money 


•changers and the slight reper- bank credits of JD1.395bn. 

— ’ — ’ — " Despite the recession, bank len- 
ding increased by 9.4 per cent 
last year, and deposits rose by 
11.4 per cent to JDL946bn. 

* Our priority now is to focus 
on the hanlcK making adequate 
provisions tor specific loans," a 


assets tor category and setting 
specific provisions," said Dr 
Michael Marto, General Mana- 
ger of the Bank of J ordan, one of 
the most prudent and profitable 
domestic banks which last year 
bought out the Jordan operation 
of Chase. 

Higher provisions have 
slightly cut into some banks 


which corresponds to the vari- 
able risk inherent in loans to' 
different quality clients. 

Bankers and the Government 
are anticipating new lending 
opportunities this year as a 
result of the economic and 
export promotion measures the 
government has taken during 
the past 18 months, which 


1986 net profits, though on the- should start showing results in, top money changers Halim Sal- 

« At. _ V J? a vUa rnA/tn^V Ttnlf thStf! ttOUr J K+Z P... _ C_ 1 J .4L.. 


whole the Jordanian banking 
system Ms maintained the same 
profit level as last year. 

All banks ancTTEnance com- 
panies are passing through a 
period of consolidation, with an 
emphasis on identifying their 


the second half of this year. fiti and Sons, may herald other 

In the short run, credit will be possible mergers among com- 
more difficult to obtain by com- mercial banks, investment com- 
panies without a proven track panies and money changers, 
record, particularly as expor- The government will not force 
tors, as the banks continue to mergers, according to senior 
fovour lending to government or monetary officials, but would 


cessions this had on local confi- 
dence in banks. 

• Much stricter reporting, loan 
classification and provisioning 
requirements dictated by the 
Central Bank. 

• And several mergers and buy- r r - - - — — . , . ... — — - 

-outs which could signal the start. Central Bank official said in an best clients, broadening their government-guaranteed mstitu- like to see the emergence of 
of an anticipated period of interview, adding that specific, range of services to include tions - -This trend is_ further stronger institutions with a 

corporate consolidation and loan loss provisions are being more fee-based services , an d promoted by the tax-free status more formidable capital base 

restructuring, following the made above and beyond general trying to 'reduce their cost of of bonds and the Central Bank's and greater depth of manage- 

**•-«• *— — » funds, in an environment of refinancing facility for syndi- meat, and to this end has asked 

almost no inflation and attrac- cated loans. By the end of last banks to provide the Central, 
five real returns on deposits 
which earn an average of 7-8 per. 
cent 

Last year the Central Bank 


boom decade of 1974-83. 

The Jordanian banking sys- 
tem is small, compared to other 
financial sectors in the region, 
■with the entire financial sys- 
tem’s consolidated balance 


provisioning levels that have 
been in force for years. The 
banks, many of whom made 
higher provisions on their own 
than the government required, 
have been working closely with 


in Jordan, Saliba and Rizk 
Shukri Rizk, under a burden of 
over $50m of obligations* to 
depositors, along with several 
smaller changers, was a shock to 


not affected the banking system. 
It did signal the Central Bank’s 
tougher policy of staying out of 
corporate problems brought on 
by inefficient management or 
even illegal activities. 

The Bank of Jordan's purch- 
ase of the Chase operation, and 
the merger of the Arab Finance 
Corporation (Jordan) with the 


year, outstanding syndicated Bank with their organisational 
loans were worth JD 144m and charts for review, 
bonds JD 96m. reflecting, the 

banking system’s new-found Rami G. KltOUri 


perennial trade deficit was cut. 
as imports fell for the first time 
for several years. Private con- 
sumption is undoubtedly being 
redeed but the belt-tightening 
has not proved painful yet 

“ Compared with everyone 
else around us. we have done 
well," says- Dr Michel Marto. 
general-manager of the Bank of 
Jordan and a respected econom- 
ist With scope for manoeuvre so 
limited and its vulnerability to 
external factors so great Jordan 
jean probably boast the best- 
managed economy in the Arab 
world. Western diplomats and 
aid officials give a great deal of 
credit especially to the present 
administration under Mr Zaid 
Rifai, for maintaining stability 
over the past two years. 

"A" country with only limited' 
natural resources and only one 
of special significance — phos- 
phates of which it is the world’^ 
.third largest producer— Jordan 
has perennially been depen- 
dent on invisible earnings and 
capital transfers to balance its 
payments, while aid has always 
been an essential component of 
the budget 

Iu the halcyon decade from 
1973-83 the remittances of its 
expatriate manpower in the 
Gulfj the demand for Its exports 
stimulated by regional prosper- 
ity and from 1978 the $1.25bn, 
then the equivalent of 370m 
Jordanian dinars, were not only 
enough to ensure deficits on 
both counts but also to fuel an 
annual growth in real terms by 
over 10 per cent from 1976 to 
1982. 

Two years ago. there was 
growing apprehension about 
the fiiture of both these vital 
support systems. Committed 
Arab aid had fallen by near 
halt Recorded remittances 
going through the b anking sys- 
tem were holding up well but 
there were fears of a drastic foil 
as a result of expatriate man- 
power being laid off in the Gulf 
states and having to return 
home, swelling unemploy- 
ment— currently at least 8 per 
cent— in the process. 

Last year publicised Arab aid 
fell to JD 142m. 27 per cent 
down on the previous year with 
only Saudi Arabia fUlly honour- 
ing its obligation. The slack was 
taken up by increased develop- 
ment aid and soft-term loans. It 
is believed that there may have 
been, in addition, unpnbliclsed 
payments by the oil producers 
to finance purchases of defence 
equipment 

Encouragingly, remittances 
were actually up at JD415m 
compared with JD 403m in 1985. 
But part of the reason for the 


increase, however, was the fact 
that a much greater proportion 
went. through official channels 
following the collapse of Rizk- 
and another leading money 
changer a year ago. 

Dr Maher Shukri, Deputy Gov- 
ernor of the Central Bank, esti- 
mates that, prior to the Rizk 
affair, as much of this money 
passed outside the backing sys- 
tem as through it But some 
observers believe that it could 
have been two or three times as 
■mneb- At the same time there is 
speculation that a significant 
part of the 1986 total could have, 
been the repatriation of savings. 
But the fact that the number of 
workers returning— there are 
still 350,000 abroad— has been a 
trickle rather than a deluge, has 
generally allayed fears on that 
score. 

'Preliminary figures for the- 
first nine months of 1986 indi- 
cate that the current account 
deficit for 1986 will be the 
lowest for many years with the 
deficit of JD 27m, 37 per cent 
less than in the same period of 
1985. Especially heartening was 
the narrowing of the trade gap. 
Imports fell by 20 per cent from 
JD L07bn to JD 950m. Two cru- 
cial foebors were the fall in oil 
prices and a weaker dollar. The 
others were tighter controls to 
protect local industry and lower 
consumption. Exports, though, 
were also lower at JD 256m com- 
pared with JD 310m in 1985. 

* Jordan has succeeded in boos- 
ting volume sales of phos- 
phates — accounting for nearly a 
third of exports by value last 
year— and potash but earnings 
have been hit by depressed 
prices. Its export potential more 
than ever is restricted by the 
acute difficulties of its closest 
markets not the least Iraq’s 
financial plight That has 
involved giving Iraq a credit 
line of over $500m repayable in 
oil but only alter a time lag of a 
year. Increasingly Jordan Is 
resorting to bilateral arrange- 
ments with trading partners 
including Comecon countries 
wbose share of its trade is 
increasing. 

Disturbingly, however, 

foreign exchange held by the 
Central Bank had fallen at the- 
end of February to only JD 
86.5m compared with a peak of 
JD 353.9m in 1971 and the 
equivalent of less than a month 
and halfs import cover. (Gold 
holdings remained at JD 70m, 
more or less where they have 
been since 1983.) 

“ We hope this trend will be 
reversed, if not this year, then 
next year," says Dr Shukri. He 


emphasised that a prime reason 
for the decline had been the 
fact that the state had embarked, 
on projects assuming Arab 
and' donors would fulfil their 
pledges in fulll With the com- 
mercial banks’ - foreign assets 
still totalling JD 350m, foreign 
exchange was freely available.- 
hepoints out 

The nadir in the central 
bank's holdings was reached 
only a few months after the gov-; 
eminent bad taken receipt of a 
$150m syndicated loan facility. 1 
State spending has been the: 
essential cause of the rundown. 
Jordan is still considered a good] 
risk despite the growth of the 
budgetary deficit. But the 
state's indebtedness caused the 
last International Monetary 
Fund mission to visit Amman 
last summer great unease. 

In the event in 1986 expendi- 
ture, originally set at JD 832m 
exceeded the budget by JD 
222m— nearly 20 per cent of GDP 
if development loans are not 
defined as revenue. 

At the end of last year, Jor- 
dan's public external indebted- 
ness reached JD 1.1 Ibn now 
involving, according to a recent 
statement by Mr Rifai, a debt 
service ration of 15.9 per cent 
That is still in reasonable 
bounds in the opinion of com- 
mercial bankers, if not the 
IMF's. But it looks seL to surpass 
soon the IS per cent ceiling laid 
down in the plan and— in the 
not-so-distant future— the 20 per 
cent which the Premier 
described as the internationally 
accepted “red line." 

The 1987 budget, set at just 
over JDlbn is aimed at expan- 
ding local production, promot- 
ing exports and creating new 
jobs. It may once again prove 
somewhat notional. As usual 
capital expenditure on defence 1 
equipment is not included. 

The Government’s predica- 
ment is a difficult one. Job 
creating must be a priority. But 
.'there is a danger that it might go 
too far in its attempt to revital- 
ise the economy thereby under- 
mining the stability maintained' 
in an extremely hostile econo- 
mic environment over the past 
four years. 

There is no clear indication of 
a strategy— or the political will 
to pursue one— which would 
bring about the decisive shift 
away from consumption towards 1 
investment required if the kind 
of growth targeted by the 1S86- 
90 plans is achieved on a sound, 
non-infiationary basis. 

Richard Johns 



The Latest Addition to the Finest 
Collection of Hotels in the World. 

Commanding panoramic views from one of the 
seven hills overlooking Jordan’s Capital, the Amman 
Plaza is the country’s finest hotel. 

Forming part of the prestigious Al-Shmeisani 
complex, it is just half an hour’s drive from the 
main international airport. 

Inside, a combination of fine furnishings, superb 
international and oriental cuisine, spacious bedrooms 
and lavish suites create an ambience of cool luxury. 

And, although' a new hotel, the Amman Plaza 
offers all The traditional standards of service interna- 
tional travellers associate with Trusthouse Forte 
Hotels throughout the world. 

Call Trusthouse Forte Central Reservations on 
01-567 3444 or the Amman Plaza direct on (6) 674111 
(Telex: 23266 Plaza Jo). f|| Trusthouse Forte Hotels 






18 


Financial Times Friday May 22 UWT 


( JORDAN 4 ) 


Agr! culture 



SOMETHING PRETTY drama- 
tic had to be done with Jordan's 
agriculture sector. After all, it is 
a major source of income for 20 
per cent of the population and 
provides jobs for about 12 per 
cent of the labour force, span 
from being the only means by 
which the Kingdom can attain 
some degree of food security 
and reduce its massive food 
import bill. 

It was therefore no joke when, 
in the eary 1980s. the wheat har- 
vest fell to one-twentieth and 
then one-fiftieth of the annual 
consumption of 50.000 tonnes, as 
a result of successive drought 
years; and when vegetables 
jvere left to rot in tbe fields, due 
to over supply and low prices is 
the domestic market, and tbe 
absence of an effective market- 
ing arm for export. 

The struggle to formulate a 
well-defined. long-term 

agricultural policy has been 
going on for many years, see- 
sawing between free enterprise 
and import/export control 
strategies as the Governments 
changed. The very real and 
argent need for action stared 
planners in tbe face when they 
were assessing the 1981-86 five- 
year plan and drawing up the 
current 1986-90 programme. 

It came to light that agricul- 
ture's share in the GDP had 
dropped almost 30 per cent to' 
5.6 per cent during the 1C8I-86 
plan period and that agricultu- 
ral Investment (excluding dams 
and irrigation) during the five 
years reached only JD 182m. a 
shortfall of JD51m below the 
planned investment of JD 233m. 

Planners and the Government 
also took carefhl note of the 
figures which revealed that the 
private sector had fulfilled 105 
per cent of its target while the 
public sector paid out only 43 
per cent of its allocation. 

The current five-year plan 
and the present agricultural 
policy are based on achieving a 
growth rate of 7.8 per cent in the 
sector and boosting the income 
from agriculture to JD X63m by 
1990 from the current rate of 
JD 97m. The Government 
expects to attain this goal by 
increasing spending on 
agricultural projects to JD 337m 
of which the public sector is to 
provide JD 117m and the private 
sector JD 220m and by backing 
•this expenditure with a series of 
Government measures to reg- 
ulate vegetable output, increase 


cereal, red meat and fodder pro- 
duction and renewed efforts to 
improve marketing. 

Mr Manvan Hmoud. the Minis- 
ter of Agriculture is confident 
that his ministry can handle its 
new administrative and super- 
visory role. He believes that tbe 
increased Government commit- 
ment and direct involvement 
with agriculture is necessary to 
strengthen the rural economy, 
stem urban migration, lower the 
JD 100m annual food import bill 
and increase self-sufficiency. 
He is therefore unperturbed by 
complaints of *• too much Gov- 
ernment intervention and sup- 
pression of initiative and market 
forces " levelled by farmers and 
economists. 

The controversial agricultu- 
ral cropping pattern for irri- 
gated vegetable cultivation, 
greeted by cries of alarm when 
introduced in early 1984, was 
Lhe first major move to regulate 
production and put a stop to 
cyclic gluts of tomatoes, auber- 
gines and cucumbers which 
used to cost the Ministry an 
average of JD 1.25m each year in 
grower support. 

Three years on, Jordan has 
become self sufficient in the 
production of potatoes and 
onions which had a combined 
import cost of JD 3.62m the year 
before the cropping pattern was 
introduced to diversifr the 

crops being cultivated and to 
reduce the area grown with 
tomatoes. The cropping system 
has also benefited consumers' 
who can now select Jordanian 
broccoli, garlic, leeks, fennel* 
and celery from their 
greengrocer, all of which were 
imported three years ago. 

Food security is a major 
preoccupation in Arab coun- 
tries. especially in cereals, and 
Jordan is no exception. Annual 
wheat production has varied 
wildly from the 1980 high of 
133.000 tonnes to the record low 
of 8.000 tonnes in the drought 
year of 1983-84. 

In order to achieve a higher 
and more stable grain harvest, a 
two-pronged approach to cereal 
cultivation has been adopted. 

First, there is a greater emph- 
asis on better farming methods, 
the use of fertilisers and pesti- 
cides, and improved research 
and extension— all of which is 
estimated to boost production 
by around 5 per cent, even in the 
rain-fed grain growing areas. 
Also, the completion of a three- 


_ 

1 Real Growth Rate 

of Sectoral Income || 




1988*1990 


1981*1385 Pfe n 

PISBI 


Planned 

Actual 

Planned 

Agriculture 

7.5 

7.0 

7.8 

Mining and Manufacturing 

17.8 

4.9 

7.2 

Water and Electricity 

18.9 

9.6 

4.7 

Construction 

12.6 

2.3 

4.0 

Total Commodity Producing Saetom 

143 

4Jt 

8.4 

Trade 

10.0 

4.3 

4.0 

Transport & Communications 

11.1 

S.4 

5.6 

Government Services 

3.5 

2.2 

4.3 

Other Services 

9.0 

3.9 

3.5 

Total Services Sectors 

8.4 

3-7 

4.3 

GOP (at factor cost) 

11.0 

4.2 

5.0 

Source: Ministry of Planning 



year seed multiplication project 
late in 1987 is expected to help 
push up the grain yield per 
dunum (10 dunums^l hectare). 

Second part of the strategy is 
to drastically increase the area 
of land grown with cereals — 
both wheat and fodder since the 
expansion of the livestock sec- 
tor has been restricted by short- 
ages in locally produced animal 
feed. 

In April 1986, the Government 
began to lease state-owned land 
in the semi-arid southern 
regions of the Kingdom for 
agricultural development by 
private investors. A total of 
200,000 dunums (20,000 hec- 
tares) in the Suwwan and Qa 
Disi areas have been leased so 
far at nominal fees of 100 ills 
■per dunum annually. The Gov- 
ernment has also guaranteed to 
purchase all output at subsi- 
dised prices for five years. 

The Jordanian and Arab 
investors who leased the land 
are also exempted from income, 
land and agricultural taxes fora 
five-year period. The bulk of the 
leased land is to be grown with 
wheat and barley but the gov- 
ernment is also encouraging 
integrated farming in these 
areas to Include cattle and 
sheep raising. 

A similar leasing policy in the 
Azraq region is presently under 
serious consideration and stu- 
dies on the land utilisation 
potential and available water 
resources are underway. In 
addition, the Ministry plans to 
launch an ambitious integrated 
farming project in the Hamad 
Basin, at the point where the 
Saudi, Iraqi and Jordanian bor- 
ders converge. 

Even with the availability of 
new pasture areas, it is optimis- 
tic to expect that livestock far- 
mers will be able to meet more 
than 50 per cent of local demand 
for red meat 

However, rising standards of 
living and steady population 
growth have increased demand 
for red meat far faster than far- 
mers will be able to make up in 
tbe near fixture. Imports, par- 
ticularly beef, are likely to con- 
tinue to bridge the gap. 


The Kingdom is. however, self 
sufficient in poultry, meat and 
the poultry industry contributes 
approximately 65 per cent of the 
overall income from animal pro- 
duction and husbandry. At the 
end of 1985, the total capita! 
involved in this sector stood at 
JD 145m. The major problem in 
tbe poultry sector had long been 
a lack of cold storage and freez- 
ing facilities. This, has meant 
periodic gluts and shortages of 
chickens and subsequent price 
fluctuations. The entire sector 
has recently been reorganised 
and will now be run by a Gov- 
ernment company with private 
shareholdings and a capital of 
JD6m, which will take over 
responsibility for all slaughter- 
ing, marketing and distribution 
of poultry. 

The most significant develop- 
ment in Jordan’s agricultural 
sector over the past year has 
been a breakthrough in the 
marketing effort of the official 
public marketing company. 
With its teething troubles and 
breakdown problems largely 
resolved by mid- 1885, the 
Agricultural Marketing and Pro- 
cessing Company (AMPCO) 
introduced stricter quality con- 
trol standards for export and 
improved its packaging — both of 
which had previously let the 
side down against fierce com- 
petition from low-cost sup- 
pliers, notably Greece and 
Turkev. 

With an additional 114,000 
dunums of land in the Jordan 
Valley, the Southern Ghor and 
Wadi Araba to be brought under 
irrigation within the plan 
period, fruit and vegetable out- 
put is projected to rise 20 per 
cent by 1990. AMPCO is plan- 
ning to build cold storage facili-. 
ties to cope with the expected 
increase and will soon be 
backed in its activities by the 
recently formed Jordan Market- 
ing Organisation (JMO) which 
will research agricultural 
marketing, set prices for com- 
modities and conduct feasibility 
studies on the agricultural sec- 
tor and food industries. 

Anne Counsel] 


Progressive 
Banking In Jordan 


Grindlays Bank opened its 
first branch in Jordan more 
than 60 years ago and has been 
established in the country 
longer than any other bank. 

Today it is also one of the 
most modem, offering its 
customers a complete range of 
domestic and international 
banking services which 
combine traditional service 
with up-to-date banking 
advantages. 

Through its extensive 
branch network within Jordan, 
it provides private and 
corporate banking facilities 
including trade finance and 
project bonds. In addition 
international clients benefit 


from first-hand knowledge 
of local banking and business 
conditions with a specialist 
unit dedicated to looking 
after multinationals. 

Grindlays Bank is now part 
of the Australia and New 
Zealand Banking Group which 
has over 1,600 branches and 
offices in more than 40 countries 
and assets in excess of 
US$35 billion. 

With excellent inter- 
national links, it is well-placed 
to offer all the services of a 
major worldwide bank. 

lb make a successful 
banking connection in Jordan, 
contact Grindlays or ANZ today. 


Grindlays Bank p.Lc. 

London: Minerva House, Montague Close, London Sfcl 9DH- 
Tel: <01)378 2121 Telex: 885043/6 ' 

Jordan: PO Box No9997, Shmeissani, Amman. 

Tel: (06)660201 Telex: 21980 mnerva jo Fax: (06) 679115 Cable: MINERVA 
Branches; Amman, Akaba, Irbid, Kerak, Zerka, Northern Shouneh 

Member of the ANZ Group 

AUSI1ULH • BAHAMAS • BAHKALV * 3ANGLATESH • BPAJL • CANADA - CAYMA'J SLANDS • KOPIES REPUBLIC OP Q8NA ■ ITJl • PRANCE • 
GERMANY • CH AN A • CPJESCF ■ OJ EENSCY • MOIWC KOVG • INDIA ■ INDONESIA ■ WAN • HAU • IAPA.N • ERSEY • IORDAN • «M« • REPUBLIC OF 
KOREA • MALAWI* ■ MONACO * NTTAL • NEW ZEALAND • NJCEHa • OMAN ■ tViTUA NEWCUC4EA » • SWCAPOM- SOLOMON 

BLLND5 • SHUN ■ SO LANKA •SMTIZSILAND •TAIWAN • THAILAND ■ UGANDA • UMTH> ARAB EMIRATES ■ UMTEDlUNCCOM* UNITED SLATES OP 

America • Vanuatu « zaire ■ zamxa •Zimbabwe 


Phosphates 


Fertiliser plant on profits trail 


THE JORDAN Phosphate Hines 
Company (JPMO baa been a 
continuing source of pride in 
Jordan's heavy industrial sector 
and a consistent contributor to 
the national economy. Bearing 
fkill responsibility for the 
extraction, primary processing 
and marketing of the Kingdom's 
principal natural resource— it 
is the world's third hugest pro- 
ducer after Morocco and the 
ITS — the Government-owned 
JPMC adopted a methodically 
onward and upward approach, 
to its operations soon after Its 
formation in 1953. Over the 
years, it baa developed 


a comparatively aggress iv e 
marketing strategy— reflected 
both in climbing production 
figures stroug sales and steadily 
rising profits. 

Jordan has seen its phosphate 
production almost quadruple 
over the past 10 years— climb- 
ing from 1 . 68 m tonnes is 1978 
to 6 2 5 m tonnes in 1886. In tan- 
dem with the rise in production, 
sales have also been on the up 
and op — inceasing from L65m to 
5 .2m tonnes over the same 
period. JPMCs main export out- 
lets are in East Europe. Asia 
and the Fax East with India, 
Romania, Yugoslavia, Indone- 
sia and Japan ranking as the top 
live buyers in 1986. 

Export agreements are 
largely conducted through 
counter trade arrangements 
based on independent price 
negotiating. The fob. (Aqaba) 
price for phosphates is in the 
range $28—42 per tonne depen- 
ding on quality as determined 
by percentage Tri-Calcium 
[Phosphate (TCP), as well aa 
physical and chemical prop- 
erties. The higher grade phos- 
phates are produced from the 
Wadi A! Abiad and Al Hassa 
mines and have proved to be 
readily marketable. The lower 
[grade rock, mined mostly from' 
the Ruseifa mine near Amman, 
[has been hard to shift on inler- 
fuational markets, blighting an 
otherwise excellent company 
performance. 

These marketing problems 
prompted the company to shut 
down the Ruseifa mine in July 
1985 in a bid to avoid further 
losses from producing low grade 
phosphates. As the * tempor- 
ary " closedown dragged on into 
1986. the issue of poor quality 
irock moved to centre stage and 
became a catalyst for a major 
shake-up in the Kingdom's 


heavy industry sector aa well as 
landing the Ruseifa mine a 
leading role In an ambitious 
JD400m scheme to establish an 
integrated chemical industries 
complex at the Dead Sear 

A significant development for 
the JPMC was Its August 1988 
acquisition of . the Jordan 
Fertilisers Industry Company 
CJFXO for JDCOm. The JFIC, 
which has a capital ofJDSSm 
and owned a JDl45m plant In 
Aqaba, had seen the Mice of its 
diammonicun phosphate end 
product drop by nearly 50 per 
oentin five years aud by the end 
of 1985 JFIC had^ posted 
accumulated losses of JD40xn 
JPMC Director General Wasef 
Azar does not however see the 
fertiliser plant as a millstone 
for the JPMC. On the contrary, 
he expects long-term benefits 
all round as a result of a recent 
and dramatic rethink of Jor- 
dan’s extractive and- chemical 
industries. He also belfetffarthat 
in the immediate fixture the 
JPMC is in a stong position to set 
the fertiliser plant on the right 
track and that later, within the 
sew integrated approach to 
industry, he foresees a' - turn- 
around in the fortunes of the 
fertiliser complex through the 
domestic provision, of raw mate- 
rials which previously had to be 
imported, pushing up already 
too high production co s t a . 

On the first level. Hr Azar 
notes with pride that the 
JPMC— by harnessing its 
marketing expertise and 
" existing good relations n — has 
already succeeded in selling the 
fertiliser plant's total annual 
production of approximately 
3.6tn tonnes planned for 1987. 

The new management has also 
reduced production costs from 
*250 a tonne to around the *200 
marie, although the end product 
is still only fetching $158—178 
per tonne on the Ductaating 
world market. Mr Azar expects 
•that moves to diversify sources 
for raw materials and equip- 
ment will also reduce costs, not- 
ing rueftilly that Western sup- 
pliers, particularly those for 
spare parts. “ have not been fUr 
at alL" The main remaining 
stumbling block is a technical 
problem, still unresolved with 
the contractor, over the plant's 
inability to produce concen- 
trated phosphoric acid in suffi- 
cient quantities. 

Moving onto the new inte- 
grated approach to industry. Mi 
Azar outlined plans fer a Dead 
Sea brine and phosphate 


development -project, linkiaj 
the' operations of the Ruselfe 
mine with those of the A rat 
Potash Company to recycle and 
utilise the by-products of each 
in about of new and established 
chemical-based industries. 

Itt the first stage; u*M0. the 
plan Is to build s calcination- 
plant to produce highly concen- 
trated calcine rock phosphate 
using low grade ore from toe 
Ruseifa mine. A detailed study 
on the processing and utilisa- 
tion of calcine phosphate for the 
production of phosphoric acid 
just been completed and a 
pilot plant is presently conduc- 
ting tests on the product as well 
as. the carbon dioxide and lime 
by-products of the calcination 
process. 

A feasibility and costs study 
has just got underway on the 
utilisation of the by-products 
and the Soviet Union has 
• expressed interest in becoming 
a party to the phosphoric acid 
arm of the project, whilst India 
is ' seriously considering its 
involv e ment in other sectors of 
the complex. 

Overseeing the implementa- 
tion and engineering work for 
the projected complex is the 
one-year edd Jordanian Indust- 
rial Services and Engineering 
Consortium (JISECO). a public 

Shareholding company presided 
over by Mr Omar Abdullah 
Daohan, who is also chairman of 
theAr&b Potash Company and a 
former director general of the 
Natural Resources Authority. 

. . Mr Daqhan is optimistic that 
the comitate will prove to be 
faariKi* ptfng oil or gas as 
energy. But.' the findings of 
recent studies on oilsana <Ur- 
ssxhD reserves lathe Dead Sea 
region havegenerated consider- 
ably excitement over hanfes- 

«*«g this resource for low cost 
energy. 

According to Ur Daqhan, ini- 
tial exploration work has been 
“ encouraging " with estimates 
of reserves put at well over the 
required 20m cubic metres for 
the next 28 years. ■ 


saw. 

SSrSfe 

process- 

p3* nproj^i 

ssra 'SZS&Z 

according to Mr Daqhan. 

a JD lm feasibility study on 
stage one of the complex u r " 
rentiv being conducted by 
J1SECO with financing from 
shareholders, including tne 
JPMC wbch has a 20 per cent 
stake In the consortiums JD 
500.000 capital. Tbe outcome or 
the study will determine the 
■number of aubsidaries within a 
mother bolding company for the 
complex. 

Aside from JPMCs close 
involvement with JISECO and 
the Industrial complex, lhe com- 
pany is also actively pursuing 
Us own individual expansion 
programme. The company has 
taken over the new Shidlyrh 
site In southern Jordan and 
expects to start mining and pro-' 
ductlon by rnid-2988. 

Tbe Shidiyeh project, with it* 
proven reserves of some Ibn 
tonnes of high grade phosphate, 
is expected to push export* up 
to around 9m tonnes annually 
by i960, according to Mr Aiar. 
The project’s infrastructure ten- 
ders have been awarded and 
JPMC will be floating tenders 
for the procurement of two drag- 
lines and mining equipment in 
the next three months under the 
first stage of the project and at a 
cost of JD 23m to JD 2fim. 

Feasibility studies on a rail 
link between the Shidiyeh site 
and Aqaba have also bees com- 
pleted and are presently under 
assessment by the Cabinet. 

Anne CoanttU 


Tourism 


A lack of strategy 


j JORDAN HAS ail the ingre- 
dients for what should be a 
dynamic tourism industry: fine 
weather, a complete infrastruc- 
ture, hundreds of antiquities 
and biblical sites and unique 
natural attractions. The geog- 
raphic location, is also strage- 
tic, and its people gregarious 
and easygoing Should an Axab- 
Israeli peace ever materialise, 
Jordan's tourism potential 
would grow exponentially. 

But Jordan's tourism poten- 
tial remains substantially 
untapped, due to the combina- 
tion of imprecise national 
priorities and strategies, a 
meagre marketing and promo- 
tion budget, and inconsistent 
coordination among the various 
component parts of the tourism 
industry, such as the Tourism 
Authority, hotels, travel agents, 
tbe national airline, and land 
transport companies. 

Tourism developed in Jordan 
in the 1950s and 1960s due to 
demand from Europe and North 
America for trips to Holy Land 
sites, notably Jerusalem and 
Bethlehem. When Jordan lost 
the West Bank and the Holy 
Land attractions to Israel in the 
1967 war, the government was 
forced back on the substantial, 
but latent tourism potential east 
iJof tbe Jordan River. 

Not only does Jordan have 
world class attractions in Petra, 
the 2,000-year-old, rock-cut capi- 
tal city of the Nabataean Arab 
kingdom, and the Greco- Roman 
city of Jerash; it also boasts a 
splendid array of antiquities 
sites spanning every major 

period of human civilisation. 
They include stone age villages,' 
biblical walled towns and 
archaeological remains from 
the Bronze and Iron ages, 
Greco-Roman fortresses and 
towns, Nabataean temples and 
cities, Byzantine churches, 
mosaics and villages, early and 
medieval Islamic palaces, baths 
and fortresses. Crusader cas- 
tles, and Ottoman forts and vil- 
lages. 

This wealth of antiquities is 
easily accessible through a com- 
fortable infrastructural net- 
work of roads, hotels, rest- 
houses, airports and airline: 
connections, coaches and rent- 
a-cars it is complemented by. an 
equally varied and unusual fare 
of specialist attractions. 

These include bird-watching 
at the Azraq oasis, several mine- 
ral hot springs in use since 
Roman times, the briney ther- 
apeutic waters of the Dead Sea 
(at 400 metres below sea level, 
the Lowest spot on Earth), 
superb snorkling, scuba-diving 
and year-round marine sports at 
the Red Sea port resort of 
Aqaba. 

It is possible to take a nostal- 
gic ride on a World War I vin- 
tage steam railway along the 
line made famous by Lawrence 


of Arabia, horseback ride along 
the ancient Spice and Incense 
Route in the Petra region, and 
climb, hike and caravan in the 
pastel-coloured. moonscape- 
like expanses of Wadi Rum, to 
mention only the most impor- 
tant 

Riding on tbe back of the Holy 
Land market's pull Jordan has 
steadily increased the number 
of annual tourist arrivals and 
the length of their stay in the 
country. In 1986, the tourism 
and travel current account 
brought in JD 186m ($558m), 
compared with 1985's -record 
high JD 204m (S600m). Though 
total “arrivals" into Jordan 
increased from L89m in 1985 to 
L9i2m in 1986, actual tourist 
arrivals are thought to have 
dropped if expatriate Jorda- 
nians and Pales tinians and 
Arab workers are omitted from 
the arrivals figures. 

European arrivals dropped 
from 109,683 to 90,341, and North 
Americans declined from 60,853 
to 37,078— largely due to the 
same fears of political violence 
that kept so many North Amer- 
icans away from West European 
and Mediterranean destina- 
tions. 

Jordan's strategy is to lessen 
its traditional vulnerability to 
the erratic North American 
market and focus on the less 
fickle Europeans, who in any 
case spend an average of about 
five nights in the country, com- 
pared to the Americans' one-to- 
two nights. Royal Jordanian air- 
line concentrates its marketing 
on North America, as it benefits 
more directly from ferrying* 
Bible-minded pilgrims to the 
Holy Land via Amman and the 1 
Jordan River bridges. 

'Direct charter flights from! 
European capitals to Aaaba are 
expected to resume next year 

after nearly a decade's suspen- 
sion, while closer co-operation 
with several leading European 
tour operators has started to 
stimulate the market again after 
last year’s slippage. 

Those few European oper- 
ators who specialise in Jordan 
and other Near East destina- 
tions, such as Jasmin Tours of 
the UK, report high advance 
bookings this year, and say they 
would be able to bring more 
travellers to Jordan if sufficient 
high season (spring and autumn) 
hotel accommodations were 
available at Petra, Aqaba ana 
Amman. 

The government also expects 
to increase visitors by linking 
its tourism promotion to that of 
Egypt’s, which draws a fer big- 
ger number of tourists every 
year, by producing joint prom- 
otional materials and conduc- 
ting joint marketing campaigns 
at key international tourism 
industry exhibitions. 

An important, but as yet 
uptapped, potential market is 


the Gulf Arab tourist, particu- 
larly family groups who like to 
drive their vans and Large cars 
to neighbouring Arab states, 
such as Syria and Egypt, during 
the hot summer months. During 
the past two years; an annual 
average of 300,000 Gulf Arabs 
passed through Jordan on their 
way to other Arab states, and an 
effort is being made to build -| 
facilities (notably a tourist vil- 
lage in the cool green moun- 
tains of Dibbin, near Jerash) to 
meet their needs. 

There is still much room for 
the private sector to provide. 
more facilities on the ground 
and increase its marketing, 
efforts abroad. Recent expert- 1 
ence suggests that some private 
investors are willing to build 
new facilities or take other, 
initiatives on their own, without 
the government as a partner. 

Examples are the Nazzaf 
family’s plans to build a ther- 
apeutic complex at the Dead' 
Sea and its desire to build 
another hotel at Petra, three 
new small private hotels in 
Irbid, Ajlun and Azraq, and the 
effort by tbe leading domestic 
tour operator. International 
Traders, to promote Jordan as a 
destination for incentive tours, 
conferences and conventions. 

After his pilot effort drew an. 
enthusiastic response from 
Europeans last year. Inter- 
national Traders director Mr 
Munir Nassar is co-ordinating a 
more ambitious drive this year, 
directed at the North American 
and European market 

Rand G. Kftonri 



MINISTRY OP INFORMATION AND TOURISM 



BANK OF JORDAN 

(Established i960) 

OFFERS COMPLETE BANKING SERVICES 
27 Branches throughout Jordan 


STATEMENT OF AUDITED ACCOUNTS AS AT 3! DECEMBER 1986 
Shareholdcre’ Funds.... ID 11,3 million 

JD 94.2 million 

Total Assets.,.. JD 126.6 million 

<JD=VS$2'9I) 


Bank of Jordan. "P.O. Box 2140, Amman. Jontan 
Telephone. 644327/8 Telex: 22033 






Financial Times Friday May 22 1987 



ERICSSON MAKES 
AS EASY TO PLUG IN 

AS A TELEPHONE. 



This is the easy new way to spread 
computer power within your company. 

Yesterday, computer power was re- 
served for the company's “heavy users” and 
the natural solution was to hook up a sep- 
arate data network. 

Tomorrow, information and com- 
puter power must be available to everyone. 
Throughout the company. And most people 
will use their equipment only a few hours 
each day. 

Therefore our idea is the only feasible 
one. With our new digital telephone ex- 
change you can use your existing telephone 
wires! And plug in personal computers, 
word processors and terminals as easily as 
telephones. 

This simplicity is one half of our strategy. 



The other half is “openness”. 

“Openness” to other systems, to 
international standards and to the future. 

One example: on our new generation 
of terminals all you need to do is press a 
button to shift from IBM to DEC to 
Sperry, etc. 

We know that this “openness” is good 
for our customers. But it’s just as important 
to us at Ericsson. Without it we couldn’t 
break into other computer worlds and 
build the functional and economical infor- 
mation systems you need. 

That’s why “openness” is fundamental 
to us at Ericsson. 

It should be equally fundamental 
to you. 

Actually, we have common interests. 


Erl own Infer ration Systems Aft. S-163 98 Stockholm, Sweden. Telephone: Inc. +-46-8-793 7000. 


ERICSSON ^ 

Ericsson Information Systems 








Here, there and everywhere. 

















0 Lufthansa 




I 


r~ 

IV. 


Financial Times Friday May 22 1987 


FT LAW REPORTS 


Italian office bound 
by property contract 


•TANKED PROPERTIES LTD v 
ENTE NAZIONALE PER XL 
TURISMO (NO 2) 

Court of Appeal (Lord Job. 
tice crCasnoT, Lord Justice 
Croom-Jobnson end Lord Jus- 
tice Nourae): May 19 1987 

A FOREIGN state organisa- 
tion which contracts to buy 
property without obtaining 
ministerial approval as re- 
quired by its constitution, is 
estopped from denying the 
validity of the contract if It 
ratifies it and as a result the 
other party suffers detriment, 
and if under the law govern- 
ing its constitution such, a 
contract is within its capacity 
and would be susceptible of 
rati fic at io n on ob taining mini- 
sterial approval. 

The Court of Appeal so held 
when dismissing an appeal by 
Ente Nazionale per 11 Turismo, 
the Italian Tourist Office 
(Euit), from Mr Justice Knox’s 
decision ([1386] 1 FTLR 246) 
that it was liable in damages to 
Janred Properties Ltd, a pro- 
perty development company, for 
failing to complete the purchase 
of a long lease. A cross-appeal 
by Janred on damages was dis- 
missed. 

LORD JUSTICE NOURSE said 
that Salt was an Italian state 
organisation supported largely 
by public funds. Janred held 
London property under an 
underlease which had 79 years 
to run. 

On March 19 1982 two agree- 
ments were entered into be- 
tween Janred and Enit. The first 
was for the grant to Enit of a 
sub-underlease for 25 years. The 
second conferred on Enit an 
option to purchase Janred’a 
underlease for £l.5m. 

The option was exercisable 
until' June SO 1982. On exercis- 
ing it Enit was to pay a deposit 
of £150.000. Completion waa to 
be July 31. 

The 25-year lease was granted 
out of time, but the parties 
treated it as valid. The option 
was not exercised on June 30, 
and lapsed. 

On July 2 a further agree- 
ment ("the July agreement") 
was reached between Janred 
and Enit by which the option 
was extended to July 2 and com- 
pletion was postponed to Sep- 
tember 30. It was signed by a 
Mr Tomba, Enifs London mana- 
ger, and by a Janred director. A 
post-dated cheque far £150,000,, 
also signed by Mr Tomba. was 
handed over. 

Enifs constitution was regu- 
lated by Law 648. It was em- 
powered to set up information 
offices abroad but the acquisi- 
tion of property required the 
approval of the Minister of 
Tourism and Entertainment. 


Between December 1380 and 
October 1982 all Knit’s powers 
were vested in its president, Mr 
Moretti, although he did not 
have power to give or dispense 
with the Minister’s approval 
where that was necessary. 

Payment of the £150,000 on 
presentation of the postdated 
cheque was made on Mr 
Morettfs authority. It was 
therefore an act of Enit itself. 

After July 2 the conveyanc- 
ing procedures in London 
between contract and comple- 
tion proceeded normally. In 
Rome there were negotiations 
to try to assemble the out- 
standing £L35m. 

Between September 29 and 
October 7 Mr Moretti made a 
number of approaches to the 
Minister for general approval 
and for approval of the ex- 
penditure. On October 8 the 
Minister wrote to Mr Moretti 
approving a suggestion that he 
should check personally in 
London the possibility of delay- 
ing completion so as to avoid 
loss of the deposit. 

On October 4 Janred Served 
on Enit a 21-day notice to com- 
plete- On October .14 Mr 
Moretti went to London to a 
meeting with Janred. He offered 
to complete by deferred Instal- 
ments. That was not accepted. 
On October 28 Janred issued 
the writ in the present action. 

The property had been kept 
off the market on the strength 
of the option agreement; the 
July agreement and the con- 
tinued negotiations for delayed 
completion. There had been no 
suggestion of repudiation of the 
contract by Enit It was put 
back on the market on 
November 2. The loss to Janred 
on resale was £200,000. 

Before Mr Justice Knox, Mr 
Brodie for Enit submitted that 
it had no power to enter into 
the July agreement without the 
Minister’s approval, and that it 
was therefore ultra vires and 
void. 

The judge held that because 
of the lack of approval Mr 
Moretti did not have power to 
authorise Mr Tomba to bind 
Enit. But he found that under 
Italian law, where a contract 
was made on behalf of a public 
entity such as Enit without 
requisite consent, the result 
was not a total nullity. 

Such a contract was subject 
to nuIUta relative. It was void- 
able at the suit of the public 
authority with the consent of 
the Italian court, but was bind- 
ing on and was not voidable 
by the other party. The judge 
found it was "susceptible of 
ratification by the public entity 
on obtaining the requisite con- 
sent ..." 

He held that estoppel was 
not excluded by nuUito reZatioa 


Appointments 


FINANCIAL CONSULTANT 

Leading hutnutional Investment house requires, for its City-based 
office. NYSE registered Financial Consultant to specialise fn invest- 
ment of Japanese equities by UK-based client*. Ideally candidate 
should have some business experience gained in US and Japanese 
trading environment. Educated to MBA standard. Salary negotiable. 
Aged 25-30. 

Please went tn strictest confidence, enclosing curriculum vitae to 
Aox AOS43, Financial Times. fO Cannon Street. London EC4P 4BY. 


because ultra vires rendered 
transaction a nullity, which 
could not be said of xndlita 
relative, and because Enit as 
opposed to its officers, had 
power to enter into the July 
agreement, which fell squarely 
within its objects. 

The judge held that the July 
agreement was binding on Enit 
by estoppeL Although his 
approach was perfectly accep- 
table, there was a slightly dif- 
ferent route to the same end. 

Assuming there was no con- 
tract in existence on July 2, 
there were two subsequent 
events of crucial importance 
which constituted ratification by 
Enit of the July agreement, or 
entry into a fresh contract on 
the same terms. On each 
occasion the act was clearly the 
act of Enit itself and not the 
unauthorised act of one of its 
officers. The only thing stQl 
lacking was the minister’s 

approval. 

The first of those events was 
the provision of £150,000 
deposit on July 14. Payment 
was made on the authority of 
Mr Moretti, in whom all Enit 1 
powers were vested. 

It was difficult to conceive 
of an act more clearly calcu- 
lated to ratify a previously 
unauthorised contract for the 
purchase of land, or to consti- 
tute entry into a fresh contract 
on the same terms. 

The second event was the 
part played by Mr Moretti at 
the meeting on October 14, in 
particular his offer to complete 
the purchase by deferred Instal- 
ments. 

Again, ft was difficult tO 
conceive of a more vivid act 
of ratification or affirmation, 

. assuming that such an act was 
still needed. 

. As a matter of Italian law 
on July 14 or October 14 there 
came into existence a contract 
to purchase the property on 
tiie terms of the July agree- 
ment That contract was void- 
able at the suit of Enit and 
with tiie consent of the Italian 
court but was binding on and 
not voidable by Janred. It was 
susceptible to ratification by 
Enit on obtaining tiie Minis- 
ter's approval. 

If that was the position 
under Italian law, there was no 
principle which required Eng- 
lish law, as the law governing 
the contract to take a dif- 
ferent view. There was no 
reason why the doctrine of 
estoppel should not be capable 
of applying. 

Enit acted in such a way as 
to lead Janred to suppose that 
it regarded itself as bound by 
tiie contract and fully intended 
to complete. The Minister’s 
approval of Mr Moretti ’s pro- 
posal to seek delay in comple- 
tion could only have served to 
confirm Emt*s representation 
that it regarded itself as bound 
by the contract. 

It being clear that there was 
sufficient detriment to Janred 
Enit was estopped from denying 
that it was bound by the July 
agreement The appeal was dis- 
missed . 

Lord Justice Croom-Johnson 
gave a concurring judgment 
Lord Justice O'Connor agreed. 

For Janred: Gavin Liqhtman 
QC, Jonathan Crystal and 
Elizabeth Jones (Howard Ken- 
nedy) 

For Enit: Stanley Brodie QC 
and Stephen Nathan (Colom- 
frofti A Partners) 

By Rachel Davies 
Barrister 


NOTICE OF DEFAULT 

NOTICE OF INFORMAL MEETING 
IfcSO A.M. June 9, 1987 at 
Cinema 1, Barbican Centre level 1 
Barbican, London EC2Y8DS 

Tb holders of 

Texaco Capital N.V. 

Convertible Subordinated Debentures Due 1994 
and 11%% Convertible Subordinated Debentures Due 1894 
Ob AorU 12. 1987 Tncaco Capital N.V,T*racoIne~ its sole stockholder*^ guarantorof the 
in hnnkro p lir y kB^A^^LLMtiwUnited States Ban£ruptcyCod» 

Tkxam Caoital N.V. failed to pay the annual i n s t a llm ent of interest due on the 113$% 
SSSiM^M»L39BTJOidoBti»ll%%D*entm«im^l&lW.r^naretopv interest 

aaadditionri Event jffDelkuItafter the pawwofaSO d«y 

grace period. 

of the Ttacaco Group and to participate in the formulation of a plan of reorganization. 

Darin* the course of the bankruptcy proceedings we will pnnridep^^tinfoniiatioiito 
nSSm ehoMem wfaeara registered hridaraor withwhom weare mhleto conumm icate fay 
throug h t>K cluarinif organisations. Eurodear and Cgdel. Holders who wish to receive 
S^oommunicatwoaara invited to request the same by coramuwcatuiff with us at the 
addfembakiw. 

Tnaider tomwide Dabeaturehdders with furtheriiffonnation about 

we have called an informal meeting of the DebenturehoWws to take ptaee 
1987. at KfcBO A.M. at Qnstt 1, Barbican Centre Level 1, Barbiean, I^ndon EC2 Y8PS. 
Attendance will be rertrteted to Debentureholders of tbeabove issues ud their authorized 

representatives. Representatives rftheTbxacoGroop have been invited to the meeting Md 

are expected to be present It is not anticipated that any matters will be placed before the 
meeting for a vote. 

Banker* D-urt Company, 
ax Indenture Trustee 
Corporate Iriwt and Agency Group 
P.O. Box SIS 
Church Street Station 
, New York. New York 10015 
TM. K& (212) 2SM527 or 2588526 


21 

SIEMENS 


Information for Siemens shareholders 

Sales figures surge due 
to power plant billing 

Further acquisitions in the U.S. 


In the first half of the current financial year 
(1 October 1986 to 31 March 1987) 
new orders continued to rise worldwide. 
The billing of the Brokdorf nuclear 


power plant caused a sharp leap in sales, 
irrespective of present economic 
uncertainties, Siemens will continue to 
invest vigorously in the future. 


NGW orders Siemens, meaning Siemens AG and its 

consolidated domestic and foreign companies, 
recorded new orders of £ 9,270m during the 
period under review. This was 7 % more than in 
the first six months of the preceding year. 
German domestic business increased strongly 
by 10%. Reflected in this figure is a major 
contract received by KWU for a conventional 
district heating plant in north Munich, if the 
power plant sector is disregarded, new orders 
generated domestically were slightly down on 

a 5% rise in booked orders fully reflects a real 
increase in business volume, because gains 
from newly acquired companies were roughly 
equal to losses related to the currency situation. 
While growth trends in international business 
were greatest in the telecommunications 
and electrical installations sectors, the energy 
sector was particularly affected by worsening 
world economic conditions. 

n&n 

1/10/85 to 
31/3/86 

1 / 10/86 to 
31/3/87 

Change 

last year’s level. Against the backdrop of a 
weaker world economy and adverse currency 
movements, new order performance at the 
international level is viewed positively. Here, 

Neworders 

: 8,631 

' 9,270 

■ + 7% | 

Domestic business 

3.933 

4,324 

+ 10% 

International business 

4,698 

4,946 

+ 5% 


Sales 


Siemens worldwide sales increased 18% to 
£8, 983m. The 32% leap in German domestic 
sales was Elided by the billing of the Brokdorf 
nuclear power plant; but even without 
power plant business, domestic sales rose a 
solid 5%. Internationally, sales grew 6%. 


ln£m 

VI 0/85 U 
31/3/86 

1 / 10/86 to ' 

31/3/87 

Change 

Sates . .* -V . 

7,607 

8,983 

+18% j 

Domestic business 

3,579 

4,733 

+ 32% 

International business 

4,028 ! 

4,250 

+ 6% 


Orders 
in hand 


The level of orders in hand remained steady at 
a high £1 9,089m, which is equivalent to slightly 
more than one year’s sales. There was no 
change in inventories. 


In Bn 

1/10/86 

31/3/87 

Change 

fOrdersinhand 


19,089 

19,089 

3ZZZ3I 

inventories - 

_ 

8,146 

8,146 

0% ? 


Employees 


With the addition of 3,000 people, the number 
of employees (excluding trainees and student 
workers) rose only marginally to a total of 
362,000 during the first half of the year. Here, 
too, the picture is differentiated: the work force 
was strengthened both in the Federal Republic 
of Germany and abroad, notably in the sales 
and marketing sector. At the same time, 
employment was reduced in several production 
areas that were affected by the economic 
slowdown. The average number of employees 
increased 8% and employment costs 11 %. 


Capital 
spending and 
net income 


Siemens increased capital expenditure and 
investment by a further 15%, bringing the total 
to £1 ,011 m. The rise is largely attributable 
to additions to fixed assets in the company’s 
growth sectors, to the acquisition of Advanced 
Nuclear Fuels Corporation (formerly Exxon 
Nuclear Company) in Bellevue, Washington, 
and to the purchase of the remaining 65% of 
Tel-Plus Communications, Inc., Boca Raton, 
Florida. 

At £229m (last year £ 220m), net income after 
taxes improved 4%; however, the steep rise in 


in thousands 

1/10/86 

3V3/87 

Change 

Employees ' •' j 

■EH 

HUH 

■+vT%'l 

Domestic operations 

231 

233 

+ 1% 

-International 

operations 

128 

129 

+ 1% 



1/10/85 10 
31/3/86 

1 / 10/86 to 

31/3/87 

Change 

1 Average number 
|of employees 
; in thousands. 

334 

m 

+># i 

Employment costs - 

3,521 

KS 

+n% i 


sales pushed the net profit margin down from 
2.9% to 2.6%. 


in Em 

1/10/85 to 
31/3/86 

1/10/36 to 
31/3/87 

Change 

Gapftai expend Run? 

and investment ; 

880 

1,011 


Net income .. 

> after taxes 

220 

. 229 

•+' 4%'J 

in % of sales 

2.9 

2.6 



All amounts translated at Frankfurt middle rate on 31/3/1987: £1 = DM 2.897. 



Siemens boosts spending 
on innovation 

Since the start of the 80s, Siemens has doubled its 
investment in research aid development A further 
increase of 13% has been budgeted for the current finan- 
cial year, bringing the annual total to DM 6.1 billion. 

This is substantially more than any other European com- 
pany spends on R&D. More than half of Siemens' 
sales are generated from products new to the market In 
the last five years. Some 40.000 Siemens people are 
engaged in research and development in strategically vital 
areas - notably, In microelectronics and microelectronics- 
based technologies, such as office automation, factory 
automation, communication networks, and medical 
engineering - ensuring that the company continues to 
move ahead in the technology race, and preparing It to 
play an even larger role in world markets of the 90s. 


Siemens AG 

In Great Britain: Siemens Ltd. 

Siemens House, Windmill Road, 
Sunbury-on-Thames 
Middlesex, TW16 7HS 

































22 


l 






"tv 


. ■ ?‘J- ■ <AC.l 

rlp t w 


Financial Umes trite? Vs? « 1987 


Company Notices 


UNILEVER N.V. 

DIVIDEND ON CE R TIFICATES FOR ORDINARY CAPITAL 
ISSUED 9Y N. V. NEDS? WNOSCH ADMiNlSTRATIE- B4 TRUSTKANTOOR 

Final cSvtdand caymans in respect of ifee year 1SS6 *£ bft tnnrfr> on or «*W 
3 June 1987 3S Mows:— 

SUB- SHARES OF FL12 

IN THE NAME OF MIDLAND BANK EXECUTOR AND TRUSTEE COMPANY UMRED 
now MIDLAND BANK TRUST COMPANY LIMITED 

A dwKsrxf. Serial No 118 of fl.6.402 per sub-aim, fepmatant to 183342 Ip 
convened at FL3 3705= £1. 

DUTCH DIVIDEND TAX refiof is gfwn by certafri Tax Conventions concluded by the 
Nutirariandfr A readant of a co nvention country wgLgBnenay.be fable to Dutch dvidand 
tax at only 15% (FID 9603. 28.4Si3p per sub-stare) provided the appropri a t e Dutch 
exemption form is suorrtised. No form is raoicrad bom UK rea do u t s if pie dividend s 
darned wrtfon six months from the above date. If the sub-stares are owned by s UK 
resident and are effectively connected wnh a busmen carried on throu^i a permanent 
establishment in die Nettatendb. Dutch dvidend tax » 25% (R 1.6005. 4?485Sp per 
sub-stare] win be deducted end wffl be allowed as credit against the tax payable on the 
profits of the essbishtiUHK. ftesdanfl of nertconverdion coucrias are Sable to Dutch 
dividend tax at 25%. 

UK INCOME TAX at the reduced rats of 12% (22.7931? per sub- share] on the grass 
■mount will be dariuctBd from payments made to UK resi d ent s instead of at the base rate 
a) 27%. This repres ents a provisional aBowanca of erecfit et me rale of 15% tar the Dutch 
dividend tax already vutfltaJd. No UK income tax wS be deducted from payments to 
non-UK residents who submit an Inland Revenue Affidavit of non-residence In the UK. 

Tb obtain payment of the dividend aib-share ce n ifcat e s must be Bsted on Listing 
Forms obtainable from:— 

Wtatend Bank pic. Stack Exchange Services Dept. Mariner House. Pepys Street. 

London. EC3N ADA 

Northern Bank Laniusd. 2 Wring Street Belfast BT1 2EE 

Affied Irish Banks pie. Seeuriaea Pfgt. Stock E xc h ange. BanfeCemre. BaSsbridgo. 

Dutfm-t 

Oyctesdafe Bank PLC. 30 St Vincent Place. Glasgow: 

Separate forms are meSabta for use (a) by Banks. UK firms of Stockbrokers. Senators 
or Chartered Accountants (b) by other daimana. Notes on the procedure, in each cue. are 
printed on the forms. 

DUTCH CERTIFICATES OF Fl_1000. FLIOO and FL20 

A drwJencf of R. 10.87 per FL20 against surrender of Coupon No 1 18. Coopons may 
be encashed dvough one of the paying sgerrs in maNerhortanta or through Midland Bank, 
pic: in the latter case they must be Estad on the special form, obtainable from the Beta, 
which contains a declaration that the cerbficeaa do rwt belong to a Netherlands modem. 
Instroctm ns for claiming refef from Dutch dMdvid and UK income tax are as set out above 
except that UK res id ents Babb to Dutch dividend tax at on ly 15% musr submit a Dutch 
exemption form. Dutch dividend tax on this dividend is F12.6Q7B et 25% and R1.60 all 
15%. The proceeds from the encashment of coupons through a paying agent tn the 
Netherlands wB be credited to a convertible florins account wen a bank or broker In the 
Netherlands. 

A sia la m e n t of the procedure far daiming reSef frtxn Duah efivutand tax and for the 
encashment of coupons, including names of paying agents and convention countries, can 
be obtained from NStBand Bank pic s the above address or from the Ixndon Transfer! 
Office. 

N-V NEDERLANDSCH ADMINISTRATE EN TRUSTKANTOOR 
London TVanefer Office. UaHover House. Bl ackfriara. London EC4P4BO. 

20 May 1987. 


Notice of MMIM 

MARINE AND GENERAL MUTUAL 
USE ASSURANCE SOCIETY 
NOTICE 15 HEREBY GIVEN to *« 
Members that tbe 135m Annual 
General Meeting o I the Society out 
bo Ml at MOM House. Keen* Sou. 
Worming. West Shuck an Wwnes- 
jby. » June at Ilia am- lor tbo 
following our sio5*4'. 

1 To receive me Directors* Resort 
and Financial Statements tor tbe 
veu- enoed 31 December 1916. 

* TP con sider tbe riecaoa or 
Directors. 

3 I?-. Pm t M4r*riac 

Sg^«C,rS5U 2 & 
- .fira? *5? mnu “ ritjcD - 

By Order of me Bo ard 

15 Asril 1987 X SUTTDN ' 

Each member mar attend and vote In 

5ZT22. or . Dy c f? XT 41 "WHS* Of die 
Society, a proxy "tm eoe be a 
metiWer of tne Society. 


APPOINTMENTS 


BBL (CAYMAN) LTD- 

unconditicnolly guaranteed by 

Bangkok 

TBanfc 

HfrrrflVja 

-US$50,000,000 
Roofing Rote Notes due 1994 

For the six months 

May 20 , T 987 to November 20. 1 987 
Notes v/tU carry an interest rate of 7 ^ 4 % p.a. 


Listed on the Uaembouig Stock Exchange 


The Mitsui Bank, Limited 

Brussels Branch 


fiscal Agent 


Clubs 


EYE has outflved the otter* because of a 
policy of fair Slav and value lor money. 
Supper from 10-3.30 am. Disco and too 
musicians, glamorous Hostesses, exciting 
shows. 189. Regent St. Wl. 01-73* 


CSS7. 1 * 


Art Galleries 


CDLNAGHl. 14. old 


’ATE RCOLOU R S, Until 

: Sffi. 10.1. 


Mon.-Fri 

riot 


Bond St. Wl. or- 
. ANC 

June. 


ANNUAL GENERAL MEETING 

Noace Is hereby fl'*en that tb* fourts 
Annual General Meeting of Stanoard 
CJwriWNi onshore Mo-iey Market Fund 
Limited will oe held at Standard 
Chartered House. Conway Street. St 
takr. Jersey. Channel Islands, on 
Friday- lBtt June 1987 at 1Z.0C noon. 

.By Order of the Board 

"K555Sre c, ®rfkj;aB 

May 2Z 1987 Seerettry 

^ _ REPORT AND ACCOUNTS 

Th e Rapo re an d Accounts and Auditors: 
*taaort thereon ol Standard Chartered 
Ot( shore Money Market Fund LlmlSedtor 
me veer ended lie March T9B7 are 

without chtroe from Standard 
EgMWreB, Fund Managers CC.IJ Limited. 
PO Bee 122. Conway Street. St hkw 
J ersey. Channel islands. I " M * 

EAST RAND GOLD AND 
URANIUM COMPANY LIMITED 
(Peglstrarion No. 71/07001336} 
Uncarporated In die Republic 
Of South Africa I 

..CLOSING OP SHARE REGtSTERX 
NOTICE IS HEREBY GIVEN tfrat, to? me 
purpos e of the eeneral meeting of non- 
here convened lor Thursday. June 1 ; 
1987. the transfer registers and ragisters 
of members of the company will be closed 
from Saturday. June 6 tn Thursday. June 
11 1987. both days instaUraT 

By order of the board 
ANGLO AMERICAN COBPOflATlOf 
OF SOUTH AFRICA LIMITEL 

eor: M.1F1SSZ 

Remwerad Pthrac ***** 

44 Mam Street 

jDhanresourg 2001 

May 22. 1987 

WESTERN DEEP LEVELS 
LIMITED 

Otcgruered No. 57/ 022X91 06S 
aiacaroarated la the ReouGUc 
ol South Air. cal 
CLOSING OF REGISTERS 
NOTICE IS HEREBY GIVEN that for the 
ouroose of the ueoeral meetings ol mem- 
bers and of option holder! convened for 
Thursday. June 11 1987. tK transfer 

registers and registers of members am" 
notion holders will be closed from Sabir, 
day. June 8 to Thursday, June It 1SS7. 
both days inclusive. ■ 

By order at bi board 
ANGLO AMERICAN CORPORATION OF 
SOUTH AFRICA LIMITED 
Secretaries 
per J. H. PERRY 
Comaaniea Sca-aisrv 


Joining Unilever board 


44 Main Street 

Jotiannelbura 200! 

May 22 1987. 


NOTICE TO BONDHOLDERS 
CITY OF COPENHAGEN 
8i% 1979/1991 BONDS 
25,000.000 EUROPEAN 
UNITS OF ACC OUNT 

Pursuant to the provisions Of the 
Purchase Fund, notice Is her e by given 
to Bondholders that no Bonds hare 
been purchased tor the Purchase Fund 
during dm twelve- month period from 
May 15. 1986 to May 14/1987. 
Amount Outstanding: UA 1 3,578.000. 

The Fisear Agent 
KRCOlCTBANK 
SA Luxcmbottnreolia 

Mar 22. T9 87. 


PAINTINGS. Mon.-FrL IQ-fi; Sets. 10-12. 


U5 S3 30,000,000 

2nd Series Floating Euro-do liar 
Repackaged Assets of the 
Republic of Italy due I99X 
F.EJULRJ. n 

For the 3 months period May 22. 
1907 to Auguat 24. 1967 the Notes 
will carry an interest rata of T^'L 
per annum with an interest amount 
of USS2.072.57 per USStOQ.QQQ Note. 
The relevant interest aavment data 
will be August 24. 1S37. 

BANOlJE PARIBAS 

(LUXEMBO'"»r» f.t 
' Agent Bank 


Mr K. & Vddtntb, a director 
of U>1LSVER N.V. and UNI- 
LEVER PLC, has retired. Mr 
S. W. A. FitzGerald and Mr J- 
Peelen have been elected direc- 
tors of both companies. 

* 

ATLANTIC COMPUTERS has 
made four appointments to its 
main board following the merger 
with Comcap. The executive 
appointments, effective from May 
22, are as follows: Mr Nick 
Kennedy Scott, becomes group 
finance director of Atlantic. He 
was joint managing director of 
• t.-inj-ap. Mr Barry Saek becomes 
divisional director responsible 
for Atlantic's financial and 
property services division. He 
was joint managing director of 
Comcap. Mr George Mailer and 
Lord Selsdon become non-execu- 
tive directors, having been in 
similar positions on the Com rap 
board. 

*■ 

Mr Barrie Ptpkin has been 
appointed marketing d irect or of 
COUNTRY CLire HOTELS, a 
Tubsi diary of 'Whitbread. He was 
rales and. marketing manager- 
* 

Mr If. £ Rice has been ap- 
pointed chairman of DEV i n 1 
'ENERGY) part Of the Devitt 
Group. 

* 

Hr Roger Smith is fo succeed 
Mr James Longeroft as chairman 
-.1 TRIMOCO and Mr Epoo Koop- 
mans will resign f ro m the board 
r o [lowing the annual meeting. 

* 

Hr Eric Natter has been 
appointed group managing direc- 
tor of CLAYTON DEW ANDRE 
HOLDINGS manufacturer of air 
'.raking systems and other auto- 
motive components. He was 
lirector and general manager of 
Hailwood dr Ackroyd, one of 
Tayton Dewandre’s four UK 
-nanufaemring units. Clayton 
Dewandre Holdings is a member 
of the WABCO Automotive 
Products Group of American 
Standard Inc. 

*■ 

At tbe ann ual me eting of THE 
TEXTILE INSTITUTE Mr Pan! 
Wlerks. senior vice president of 
WERNER INTERNATIONAL 
was installed as president of the 
Institute for 1987 to 1989. Pro- 
fessor John Hearle and Hr 
YosUtoshi Toyoda, were elected 
vice presidents lor 1987 to 1990. 
★ 

Hr Jim McCoJT has been 
appointed managing director of 
CLYDESDALE RETAIL. He has 
also been appointed deputy 
managing director of the Clydes- 
dale Group. Hr McCoU joined 
the group in February 1986 as a 
director with special responsi- 
bility for rental and. group, 
buying. ^ 

NATIONAL Sc PROVINCIAL 
BUILDING SOCIETY has ap- 
pointed Mr Kenneth Andrew as 
commercial director with respon- 
sibility for marketing and cus- 
tomer services. For the past two 


gars he has beea with ffie 
Chase Manhattan Bank SA as 
Yict-prssldent and director of 
con sum er marketing for the UK 
and Europe responsible for 
developing the bank’s consumer 
business. 

*■ 

Mr John F. K_ Bode has been 
appointed legal etvordinaicr for 
tbe principal service companies 
ol the ROYAL DUTCH /SHELL 
GROUP from October L 
* 

SPARTEST has appointed Mr 
Brian D. Johnson as chairman. 
Other appointments Include Mr 
Robert Dearriey as marketing 
director. Hr Dominic Flint as 
products director. Mr Leonard 
Palmer as software support 
director and Mr Toby Everett as 
company secretary. 

At STONELEIGK ELEC- 
TRONICS, Romford, Hr David 
Berg has been promoted to 
director in addition to general 
manager. 

★ 

SUN LIFE ASSURANCE 
SOCIETY has appointed Lord 

Bancroft as deputy ehair m*” to 
succeed Mr Matthew Pryor, who 
has r e tii ed. The vice rh»irm»ri r 
Sr Arthur Norman, has also 
retired. 

■*- 

Mr Peter Larder has been 
a ppoint ed marketing director of 
ATHENA INTERNATIONAL, a 
wholly-owned subsidiary of Pen- 
tos. He was marketing manager 
of Dura ceil UK. 

* 

Hr Peter Nutting, Hr Michael 
Davies, Hr lain Shearer and Mr 
Bonds Ball have been elected 
directors and Hr A. T. Brain and 
Hr 2C J. Richards have retired 
as directors of JAMES WILKES. 
Hr Nutting has been elected 
chairman. He is a former 
merchant banker and chairman 
of Travel Sc General Insurance 
Company. 

*■ 

RIC ARDO CONSULTING 
ENGINEERS, Shorehazn-bv-Sea^. 
has apointed Dr Douglas Taylor 
as chairman and Mr John Bailey 
as director, client services and 
business development. The for- 
mer chairman Sir Dtamitid 
Down, retired on. April 30. 
Dr Taylor win combine his new 
post vrith his former responsi- 
bilities as managing - director; 
Mr B&Qey wiQ also assume Dr 
Taylor's former responsibility for 
Ricardo’s technical supnort and 
consulting activities. He was 
previously responsible for the 
European automotive consulting 
programme at SRI IntematfonaL 
* . 

TELEX’ COMPUTER PRO- 
DUCTS (UK) has appointed Hr 
Karl McLean as sales and market- 
ing director and Mr Richar d 
Metcalfe as director of finance 
and administration. Mr McLean 
joins from Zenith Data Systems 
where he was UK sales manager. 
Mr Metcalfe Joined Telex fnmr 
Esselte Me to where be was finan- 
cial director. 


Townsend 
Thoresen 
operations 
and safety 
posts 

TOWNSEND THORESEN. part 
cf the F and O Group, has 
appointed Mr Leslie Stephenson 
as deputy managing director, 
responsible for fleet operations. 
Based at Dover he will have 
overall responsibility for fleet 
procedures as well as Dover- 
oased senior masters. He was 
managing director of the Ports- 
mouth-based operation. Capt, 
Tony Barrett becomes a director 
of Townsend Thoresen. He wQl 
continue the comprehensive 
review of safety and nautical 
procedures already started and 
advise Mr Stephenson and 
managing director Hr Graeme 
Dunlop concerning the imple- 
mentation of his recommenda- 
tions. 

NORTON OPAX hay appointed 
Mr Edmond Langley as chief 
executive officer of its American 
holding company IfcCorquodale 
Holdings Inc. which is based in 
Baltimore. He loins from Data- 
trol Corporation, where he was 
president. 

A* 

Hr Patti W. “Buddy" Meek, 
managing director of NORTH 
SEA SUN OIL COMPANY has 
retired. He wOl be replaced by 
Hr Anthony J. Hlgginseta, who 
has served as legal advisor for 
North See Sun smce 1984. 


The BUILDING EMPLOYERS 
CONFEDERATION has elected 
Hr John Parsons as president 
for 1987/88. He is the group 
chairman of William. Gowlin, ft 
Son, BristoL 

* . 

H r Wa lter M arlowe has joined 
FIRST INTERSTATE BANK OF 
CALIFORNIA, London hnneb as 
vice president and head of 
special finance. He will be 
responsible for str uc t u re d and 
leveraged finance, asset based 
lending, and corporate -advisory 
work. Mr Marlow was a member 
of Banker-Trustis UK corporate 
finance group. 

A* 

CONTINENTAL ILLINOIS 
NATIONAL BANK AND TRUST 
COMPANY OF CHICAGO has 
appointed Hr C Timothy Wood 
as managing director and chief 
executive officer of Continental 
Bank SA. in Brussels. Mr 
Dennb H. Montgomery has 
been noe-»tionit oeneral 

manager for the UK and Europe. 
Hr Michael D. Allen becomes 
bead of Continental's corporate 
banking group in London. He 
was managing director of. Con- 
tinental Bunk SA. In Brussels. I 



S PA RBANKERNASBAN& 


TOTAL ASSETS 


USD 26 BILLION 


THE THIRD LARGEST 
BANK GROUP IN THE 
NORDIC COUNTRIES 


Office address: I 


; 8. Postal address: S-105 34 Stockholm gj 
: *68-2223 20. 


O 


Dresdner Finance B.\£ 

‘^Amsterdam 

DM500000,000.- 
Hoating Rato Note* 1965/1090 

ThsRttaorMarMtaotAeriiisiBtha Angus! 20. 1907, ttm refamnt UtarMt 

Ware* Pariod tram M*v 20, t»T lo taymtnt Oats, hmmt nsr Nots erf 

Augial IB. 1M7. Ircfcufcalft mi DMiaOOQnrinetom amount ki Bur 

dg ttm i lood by Bxrdxyx London, amount o> DM 97.40 snd interegt pw 

sa Raferenag Agant to tN p«c Not* oT DM 250.000 in tta goiQurt oC 

okAdk amass. TtaaCDtafib.- ■ OMasa&X&tadu*. 


FranWbrfsmlfcto; 

kiMwtsaz 


Dresdner Bank 

AMtonouofectaft 
Wndpgl Purine Agont. 


rirosdner B-mk Grou 


London & Scottish banks’ balances 

as at April 30 1987 


ahead of (he more caapn&eagfvw 


THE TABLES below provide the first monthly indication of flbe treads of bank lending and < 

“J Ut * r ^ J 11 * BaHk of England. They are prepared by the committee ef Loudou and Scottish 

banlutre^andcOTer the business of their offices and their subsidiaries which are listed by the of England as fcnixg within the 


TABLE L. 

AGGREGATE BALANCES 

I.IARTT.t T TKS 

Sterling deposits: 

UK monetary secter. 

UK private sector. 


UK pobllc sector. 
Overseas residents. 


Certificates of deposit. 


rf which: Sight. 

Tame One. CDs). 
Foreign currency deposits: 

UK monetary sector 
Other UK residents,.,. 


Overseas residents. 
Certificates of deposit . 


Total 

dotstusdlnf 

28,157 

U0A74 

ajlff 

15^1S 

»*9fl 

2863ST 

TM61 

9M0ft 

17,04? 

1313 
43 395 
VS38 


Change on 

month 
£m S3 

- 41 Z 
+1460 
+ T 


Total deposits. 


Notes In circulation. 
Other liabilities* 


73496 

246448 


- 428 


-24W 

- 149 

- 815 

- M 


Trt TAf. UABIUIIES - - 

ASSETS 

Sterling 

Cash and balances with Bank of 
England: 

Cash ratio deposits — 

Other balances. 


Market loans: ' 
Discount bouses. 


Other (JK monetary sector. 

UK manetaiy sector CDs »» 


2441 


*313 

28,723 

4471 


284,411 


2,768 


* 33 
- 218 


+ 53S 

- 843 

- 4*7 


+ 261 
-WB 

+1422 


-2477 

“2416 
+ 38 
-1477 

-4463 


- 184 


Total 


Local anttorftiea. 
Other. 


Change on 


Buis: 

Treasury bills. 


Other bills. 


hnstnetii: 

feitish Government stocks— 
Other. 


1417 

5455 


40S 

4453 


6491 

5477 


Advances; 

UK private sector _ 
UK public sector — 
Overseas residents. 


Other sterling i 
Foreign currencies 
Market loans: 

UK monetary sector __ 
Certificates of deposit. 
Other 


Bins. 


Advances: 

UK private sector — 
UK jrablic sector __ 
Overseas residents. 


18*51* 

41* 

8448 


17469 

464 

33,767 


9303 

78» 

15419 


Other foreign currency 

TOTAL ASSETS 

Acceptances 


* Includes items in suspense and in transit 


4^9gl 

- a 
+ Uft 

_ m 

43S8 

+ 6ft 

+ 655 

veil 

+■ TIE 

turn 

1 1 ' 

i»B 

- U3 


+ 844 
+ SI 
+ 883: 


116,266 

1Z48S 


+IJ1I 

-1.782 

-YWX 

XT WT 

-I486 

1 1 

41ft 

- a* 

- 26 
- 738 

■b 74 

9,77» 


4- 193 

2SMU 


-44« 

M 


+ 822 
+2468 


TABLE 2. INDIVIDUAL GROUP BALANCES 

LIABILITIES OUTSTANDING 
Sterling deposits. 


Change on month 

Foreign currency deposits . 

Change on month 
Total deposits. 


Change on month. 


STERLING ASSETS OUTSTANDING 
Cash and balanc e s with the Bank of w»g fan* 

Change on months. 

Market leans— UK monetary w«nr 

Change on month — 

other. 


Chanson month. 
Bills. 


Change on month. 


British Government stocks. 

Change on 
Advances. 


fhang ayn iwmiH; 


FOREIGN CURRENCY ASSETS OUTSTANDING 
Market loans and bills. 

Change on month. 

Advances. 


Change on month. 


ACCEPTANCES OUTSTANDING. 

Change on mont 

ELIGIBLE LIABILITIES OUTSTANDING. 
C h ange on month 


CXEBS 

Snap* 

Baker 

Scodand 

Bxrclays 


Ddhsf 


BnriEL 
of Seta 

Standoff 

XSft: 

£m 

£m 

£a 

£m 

£m 

£m 

£b 

Sa 

£n 

186452 

6468 

36441 

28487 

26489 

45449 

9488 

2493 

11461 

+281 

-89 

-192 

+962 

—224 

+9 

-24* 

-114 

+2 12 

734W 

1488 

14489 

8461 

15460 

21432 

349ft 

8415 

134 

-8477 

—45. 

-285 

-338. 

—512 

-L432 

+42 

-579 

-2ft 

240442 


51447 

3542ft 

41469 

67479 

13,767 

12498 

I149S 

-2416 

-131 

-488 

+564. 

-735, 

-1,427 

—28® 


+187 

2i7j» 

346 

469 

225 

m 

58C 

422 

24 

198 

-184 

+12 

-72 

-» 

-9 

ft 

-132 

+12 

+3ft 

33439 

827 

6457 

4422 

*484 

13481 

148ft 

981 

1437 

—38ft 

—ML 

+182 

+232 

+35 

<361 

-157 

+18 

+12 


171 

3403 

1484 

1467 

2419 

49ft 

331 

1,749 

-37* 

+57 

+42 

-11* 

+142 

—435 

+15 

-41 

-32 

44» 

Uft 

14U 

1484 

125 

952 

332 

■- CL 

48ft 

+716 

+76 

-82. 

+48* 

+U 

+155 

+53 

ft 

+4L 

8491 

189 

883 

551 

14U 

ns 

284 

289 

2J28 

-22ft 

-112 

-152 

-W 

+31 

-31 

+4 

0 


116469 


28447 

28,732 

1945ft 

29442 

7,772 

2,781 

5459 

+1416 

+138 

+84 

+9SR 

+3 « 

+475 

+75 

+T 

+18ft 

51401 

438 

iw 

7435 

7429 

17414 

2478 

5,731 

95 

-342L 

—5 

-22ft 

-470 

-1482 

-739 

+151 

-642 

-17 

25^ 

8M 

3419 

3489 

6,791 

5,794 

1498 

3418 

71 

-892 

-38 

-162 

-76. 

-5 

—482 

-95 

-25 

-1 

5415 

228 

L37® 

33S 

2495 

1438 

441 

383 

151 

+322 

-10 

+388- 

-17 

+32 

+» 

—49 

+11 

+37 

125,712 

5A59 

28455 

20487 

21488 

88,75ft 

7499 

24U 

843ft 

+2458 

+88 

-189 

+984 

+382 

+688 

+7* 

-188 

+289 


► - J* 

i * • v” . *"• • • 


’tfr Mjf ^ 



evised interest rates 
om the Bristol & West 

The Society's rates for Mortgages and Share and Deposit Accounts are being amended. 

The Society's standard rate for all new mortgage applications was reduced by 1.00% to 
tL2S% from 12th May 1987. 7 » to- 

The rate for existing borrowers will be reduced! from '1st June 1987 and they win be Indi- 
vidually notified 



Net Rate 
of Interest 


C^.RJr Gross Equivalent 
C.A.R.* 


No.1 Income 


8 . 00 % 


8.30% 


11.37% 


Special 3 Month 

Bristol Triple Bonus, £10,000 or more. 

£5,G00-£9,999 

£500-£4 t 999 


8.25% 


8.25% 


11.30% 


7.80% 

7.55%. 

7.3056 


7.80%. 

7.55% 

7.30% 


10 . 68 % 

10.3456 

10 . 00 %. 


THt HI? WC FOK SMSTOt TRIFLE SOHUS INCOWg ACCOUNTS Wg.t K 0 JSS CTSSTFPtM THOSi FOX SIWTOt 7WFLT BONUS 


Blue Card 


£500 or more 
£1-£499 


6.85% 

5.00% 


6.97% 

5.06% 


9.54% 

6.93% 


Shares (fully paid) 


5.00% 


5.06% 


Snoopy Savings 


6.93% 


5.2556 


5.25% 


Savings Shares 


7.19% 


6 . 00 % 


6 . 00 % 


Bristol Plus 


6.75% 


8 . 22 % 


6.75% 


Overseas Investors Bond 


9.25% 


11.00% without deduction of U.K. tax 


Charities 

AVC's 


10.00% gross 


11.00% gross 

~ The net rates of Interest on all other existing accounts on which composlte"cate tax it 
by the Society will be reduced by 1.00% from 1st June 1987. *** 

front IstJu^eT^ and Qther dep ° S,ti SUbieCt wU1 reduced by 1.00% 

Interest rates are subject to variation. 

fCOC1?QUNDEQa£UUiAt.SJZE & Wil£iiaiXtX£3ZlSAODSDTO ACCOUNt*CXOSS£QUI>ALEKI FQA.tNyt£TOUMriNG VBCSAtC.MQQMt'VlXL 



BRISTOL & WEST 

BU I LDINO-SOCI erv 
















24 



• . vf-' 




Finmjciftl Ttaw SWttay Muy te WS7 


THE ARTS 


I Arts I 

I Week I 

Eg P IS I Su l M (Tu|W|Th I 
9 22 123 [Z4|2S [28 J27 j23 p§ 

Opera and Ballet 

LONDON 

Royal Open, Covent Garden; Turan- 
dot, one of the house's mast success- 
ful and enjoyable productions of re- 
cent years, continues in repertory, 
with Eva Marton (May 22) and Gwy- 
neth Jones (25) in die title role, and 
Jacques Defecate as conductor. Wer- 
ther, a pretty-pretty John Copley 
production of Massenet's opera, is 
revived to introduce Francisco Arai- 
za Agnes to London in 
the leading roles. (2401066). 

Theatre 


English National Opera, fhHtumm- 
Shostakovich's Lady Macbeth of 
Mts ensk , in a new production by 
David Pountney by Mark 

Elder, add s another key Rrwpipp op- 
era to the company's reperto r y. 


Josephine Earstow, Jacquexrussel 
and wniard White lead the large 
cast. 

Also in the schedule; Don Giovanni, 
led in lively fashion by William Shi- 
m e ll, Richard Van Allan, Rita 
Cullis; and the Gerald -Scarfe de- 
signed Orpheus in the Underworld, 
more notable for elaborate, fantastic 
seta than for any very authentic 
sense of Offenbach wit or satire. 
(8363181). 


Der FBegende HolBnrior with Marek 
Janows id/ Christopher Perick con- 
ducting the romantic parabola on 
the solitude of the artist in society. 
Paris Opera (4266 5022). 

Spectacle Ecole de Danse prese n ts 
The Two Pigeons followed by Suite 
en blanc is hommoge to Serge tjfor 
at the Opera Comiqne (4296 0611). 

Ballet Antonio Gades at the Palais 
Des Congres (4266 2075). 

Merce AnmliiJhain DaUCa O’ w p W T' y 
with his radically wn^wn concep- 
tions. The&tre de la VUIe (4274 2277). 


Enridice - a musical fable - is avpro- 
duced by Radio France, Montpellier 
Opera and TMP Chdtfttt at TMP 
CMIfit at TMIKaittltt (4233 4444), 

NETHERLANDS 

Amsterdam, Muziektheater. The Neth- 
erlands Opera with Puccini's Mad- 
ame Butterfly directed by Monique 
Wagemakers and designed by Her- 
mann Soherr. The Netherlands Phil- 
harmonic conducted by Lucas Vis, 
with Hiroko Nlshida (Cho-Cfco-San), 
FTanco Farina (Pinkerton), Judith 
Christia (Suzuki), and Malcolm 
DoneQy (Sharpless). (Thur). 
(255455). 

The Netherlands Opera touring com- 
pany with the Barber of Senile di- 
rected ami designed by Dario Fa. 
the Netherlands Philharmonic con- 
ducted by Stephen Barlow. Kathryn 
Cowdrick (Rosina), Yoshihisa Yama- 
ji (Almaviva), and David Mala (Fi- 
garo). Tue in Tilburg, Schouwburg 
(432220). 

Scheveninfen, Circus Theatre. The 
Nederlands Dance Theatre, with the 
Netherlands Ballet Orchestra onder 
David Forcelijo. World premieres of 
ballets by Jonathan Taylor, Nacho 
Duato (to Ravel's Bolero) and Syna- 
phai (Duato/Xenakis, Vangeiis) 
(Thur). (558800). 


Madrid, Puccini's D Trittico with Vlad- 
imir Atiastov, Juan Puns, Diana So- 
viero, Iolanta Radek- An own pro- 
duction. first time in Madrid. Teatzo 
la Zarzuela. JoveQanos 4, (Wed). 

NEW YORK 

American Ballet Theatre (Metropdl- ] 
tan Opera House): Cynthia Gregory. 
Marianna Tcherkassky and artistic 
director Mikhail Baryshnikov re- 
turn for the spring season cf mixed 
programmes, including company 
premieres of Sunset choreographed 
by Anil Taylor to F lgftt " " Tui 
Said. Clark Tippets choraogrephy 
to George Perie's music. Lincoln 
Center. Ends June 13. (3626000). 

New Yock Chy BaOet (New York State 
Theater): More than 40 works by 
Balanchine, Bobbins, Peter Martins 
and other choreographers win be 
part of the two-montb-kmg 88th sea- 
son, mdudmg two new works by 
Martins set to music by Handel and 
Miriafl Turin- TVirta June 28. Lin- 
coln Center (7805570). 


Australian Ballet C omp a ny. Don Quix- 
ote. (Tokyo Banka gwifc*** (Toes. 1 
Wed). (5733588). 


Exhibitions 


LONDON 

The Tate GaBasy. Tfarner in the new 
dure GoCwy: The Tomer Bequrat, 
which a moun t s to n e wly 300 o3 
pwinrtw^ g finished iiw * 

Sod a further £8,000 or so w ater c o t- 
oars and ti r nwfega, bn been a 
sca rce of c ouluweisy and dissen- 
sion ever since it enne Into the Mb- 
Con's bands more than 08 yma 
ago. Turner had always wished tor a 
giZtery to himself widefc would show 
•B aspects of b» work. Wbatfan be 
wi»U hm* approved of Jxmra- Stir- 
ling's exxsnsioo to the Tate as a Mtit- 
abie setting is a nice aoratiau. The 
larger paintings may oe hung too 
low for one who feed fa a more oe- 
tentatious age. and the tasteful oat- 
meal Stirling bas decreed for the 
principal galleries te a fir ay team 
the rich pinm be is known to bare 
preferred. The vulgar neo-deco of 
the entrance hall ha* Ettie to recom- 
m end it But sight moms far point- 
ings and one for watercolours gjy 
rixszi enough, aorf with the three re- 
serve galleries upstairs, every point- 
nag bet the few in res to rati on or on 
loan is an the wafl. 


Lea liaisons Dangeretaes (Ambassa- 
dors): Christopher Hampton's mas- 
terly version of Lad os' epistolary 
h(hwI fQjQAifls |q London with Joqa b 
than Hyde and Eleanor David re- 
placing new toasts of Broadway Al- 
an Rk™«w and Lindsay Duncan. 
(838 6111 or 838 1171). 

Woman In Hind (Vaudeville): Pauline 
finllliw unri Minimal J ay s ton now 
lead a new cast in Alan Ayckbourn's 
bleakly ingenious comedy about a 
h ou sewi f e fan** c< ring the MamT fam - 
ily on the bade lawn. “(838 9987/5645). 

Hig h Soci ety ( Victori a Palace): Dra- 
maturgically sound but mu s ica ll y 

Weak tvmfltri'inw nf film play anri nc- 

aorted Cole Porter hits directed with 
punch but tittle taste by Richard 
Eyre, director tWjgnwtP of the Na- 
tional Th e atre . Stephen Rea notably 
charming in ^ S inatr a role, Natas- 
ha Richardson uncowed by Grace 
Kelly as the Ice maiden who melts 
(834 1317/838 4735). 

Antony and Qeopirtra (Olivier); Peter 
HalTs best production for the Na- 
tional Theatre he leaves in 1988 
brings tin* great but notoriously dif- 
ficult play to tht-iiBrig lffo with Jodi 
Dench and Anthony Hopkins as bat- 
tie scarred lovers on the brink of old 
age. Dench Is angry, witty and ulti- 
mately moving. Best of the rest at 
the NT is Michael Gambon giving 
his finest ever performance as Ar- 
thur Miner's doomed longshoreman 
in A Ifiew from the Bridge: Juliet 
Stevenson in a fine revival of Lor- 
ca’s Yenna; and David Hare's pro- 
duction of King Lear, Hopkins, a 
massive gnarled oak, which gathers 
force and more friends as it contin- 
ues in the repertoire (928 2252). 

M acbeth (Barbican): Jonathan Pryce 
is a wolfish, blood-curdling Macbeth 
in Adrian Noble's writing produc- 


tion for the RSC. It plays in reper- 
toire with Jeremy Irons' inconclu- 
sively wimpish Richard n and a 
rough and tumble modern-dress 
Romeo and Juliet Best in the RSCs 
Barbican Pit is Janet McTeer lead- 
ing a fine ensemble in Worlds Apart 
by Cuban playwright Jose Triarm. 

The Phantom of the Opera (Her Maj- 
esty's): Spectacular but enwitowtally 
nutritional new musical by Andrew 
Upyd Webber gni phjErtring rim ro- 
mance is Lerotrx’s 1911 noveL Hap- 
pens in a wonderful Paris Opera 
ambience designed by Maria Bjorn- 
son. Hoi Prince’s alert, affectionate 
production contains a superb cen- 
tral performance by Michael Craw- 
ford. A new, mer i torious and pal- 
pable hit (839 2244, CC 
379 0131/240 7200). 

Woman in Mind (Vaudeville): Alan 
Ayckbourn's new comedy has a bril- 
liant performance by Julia McKen- 
zie as a dissatisfied housewife visit- 
ed on her own garden lawn by an 
imaginary ideal family. Bleak but 
funny, hailed in sane quarters as 
vanguard feminist drama; be not 
put off by that (838 9987/5645). 

Starlight Express (Apollo Victoria): 
Andrew Lloyd Webber's roQerskat- 


movie magic, an first half 

and a dwindling reliance on 
inrfi<tf*rimm«fa» mching BTOUnd. Dis- 
neyland, Star Wars and Cats are all 
i n fluenc e s. Pastiche score nods to- 
wards rock, country and hot gospeL 
No child is known to have asked for 
his money back. (834 8184). 

42nd Street (Drury Lane): No British 
equivalent has been found for New 
York’s Jerry Orbach, but David Mer- 
rick's tap-dancing «tr»v« giinM has 
been rapturously received. 
(838 8108). 

BRUSSELS 

Victorian Jubilee Music HaH fin En- 
glish). TMfttre dn Residence Palace 
(7820251). 


American National Theatre Ajax by 

to'seSus^and^rign^ 8 ^^ Secrrge 
Tsypin. T!h6&tre Royale de la Mon- 
ocle (2181211). 

NEW YORK 

Fences (48th Street): August Wilson 
hit a home-run, this year's Pulitzer 
Prize, with James Earle Jones tak- 
ing the powerful lead role of an old 
baseball player raising a family in 
an industrial city in the 1950s, try- 
ing to Improve lot bat dogged bjr his 
own failings. (221-1211). 

AH My Songs (John Golden): Richard 
Kiley has the gratifying part of Joe 
Kell er lrt Arthur Miller's post-war 
moral tale of profits versus principle 
in a nicely dated production from 
the Long Wharf Theatre. (239 6200). 

Cats (Winter Garden): Still a sellout, 
Trevor Nunn's production of TS. El- 
liots children’s poetry set to trendy 
music Is visually startling ««>< 
choreographlcally feline, but classic 
only in the sense of a rather staid 
and overblown idea of theatricality. 
(239 6282). 

find Street (Majestic): An immodest 
celebration of the heyday of Broad- 
way in the Ms incorporates gem« 
from the original fihn like Shuffle 
Off To Buffalo with the appropri- 
ately brash and Leggy hoofing by a 
large chorus line (977 9020). 

A Chorus line (Shubert): The longest- 
running musical ever in America 
has not only supported Joseph 
Papp’s Public Theater for eight 
years but also updated the musical 
genre with its backstage story in 
which the songs are used as audi- 
tions rather thm emotions. 
(239 6200). 

CHICAGO 

Tem pe s t (Goodman): Company artistic 
director Robert Falls directs Denis 
Arndt as P r os pers in a new prodno- 


tiao with sets by Adrienne LobeL 
Ends May 29. 

Pomp Bqys and Dinettes (Apollo Cen- 

3 : Facetious look at co untry 

down-home country life with > 
good beat and some memorable 
songs, especially one played an kit- 
chen uten sils has proved to be a du- 
rable Chicago hit (935 8100). 

WASHINGTON 

Open Condquc (Eisenhower): Anne 
Jackson and Eti Watiach star in ' 
Nagle Jackson's new comedy. 

June 6. Kennedy Center (254 3870). 

TOKYO 

Kahnki (Kabuld-za): The dance seo- 
tion of the mittinri is the best bet 
for newcomers. Famous actor Boiko 
rimcM rharming wisteria maid- 
en, and BT m i M l u in n an g]j 
priest begging for alms. The high- 
light of the evening performance is 
Funa Benkei, symbol of loyalty to 
the Japanese. A lively and typical 
Kahnki scene is the battle between 
the water-borne ghost and General 
Yosbitsune's followers. pro- 

gramme and excellent earphone 
commentary. (541 3131). 

Kahnki (Shimbashl Embnjo): Enno- 
suke stars in his own version of 
YosMtsune Senbon Zakura (a mare 
adventurous - even audacious - ver- 
sion of the play at Kabulri-za} Enno- 
suJce's productions air the most 
spectacular In the form today, espe- 
cially his quick-changes and trapeze 
acts. His ghost and fox roles are 
great fon. For first-times to K*hnlr» 
this is a must (541 2211). 

Chfoeae Open: Oman Troupe fr om 
Sichuan Province. The White Snake 
is the story of two sisters who have 
spent a thousand years in religious 
training on a holy mountain 
their adventures when one embarks 
on a love affair. National Xhftftre 
(5800031). 


ft— ch M ratera of the 19th and ZHfa 
century: From Tbokmae-Laotrec's 
Moulin de la Colette to a rare Gao- 
gain with a lan dsc ap e of Brittauy 

Seen ***"ӣ* a Tmti i T ljn i t. prism <jf 

colours; from a powerful flower com- 
position by Nicolas de Stad to Ce- 
zanotfs pr o t ra it of m— C e- 
ssnas, from a pastel coXoaxed Picas- 
so stiQ Ufa to the most freque n t l y 
reproduced Degas dazxxs; the frac- 
tional spring exhibition at the 
Schmitt Gallery can boast not only 
an exceptionally long 5st of gmt 
names cf the period it coven but ex- 

I oeptio oa l quality as waQ. Gakrte 
firjifTTft 396 Rm» Sdstfisuri 
(42803836). Closed Sundays and 
lunch times. Ends Jidy IB. 

French drawin g s. At the begi nni ng of 
the 18th cen tiuy Louis XTY*» love of 
the grandiose gam way to an art 
more intimate, more p>— «big A 
sew gen e ra tion of around 
A nto ine Watteau iwtrr>diw«t T colour 
as well as a lightness of touch into 

thcar rit*i«;ing« mwW the 

of Venetian Flemish. 

Musec du Louvre, Pavilion de Flare- 
Closed Tue. Ends June L (42803920). 

Tonis, The Gold of the Pharaohs: Pari 
of a dazsBng treasure from the 
tombs of the pharaohs of Lower 
Egypt is an view in the Grand Ptt- 
lafs. Gold, silver and IspMaxufifua- 


BERGEN 


ataxy masks, pectorals tad ceremo- 
nial vases were disco ver ed in the 
fate iffifelB ft* delta of the Nik, ta 
Dwis, the capital of a country tom 
bg internal strife. Yet the relative 
h np w—H i vtnTiwn t j w i ma to hove in- 
spired the royal craftsmen with an 
ekgsaoe whose netrcUrakal re- 
straint appeals to madea sensibili- 
ty. Grand Palais, dosed The, Sods 
Jtdy 20 (4289 5410). 

Cystoma Cant—. Where better to 

|||H an (g anA 

rtufr nuk kpci l ij yil H ii M iiie tiltt 

hi Paris, whose, very name hr 
synonymous with fesMnl Tha im- 
aginatively pre s ente d rahM tkm 
rangw from thsbrrachra and tanks 

. of-an dent Gmifarto the nneexhibtte 
turn the X8th ce n t ury - W Habit 
ftanceis - and to'Erfith Flaf s lefen- 
dazy Btffl Mack rfresa. Grand Palais 
(Owed Toe, Wed fete dosing) ends 
Jane 15 (4289 5410). 

Berthe Morisot: More than 40 ofls, 
pastels,, watercolours, crayons and 
sculptures retrace the deve lopment 
of tzm woman painter who, influ- 
enced at first by CaroL- became a 
frieul of • twji Mi M iiwifat* end. 
took pert in ft •xhfoitiaal - 
GmlezleWaring HopUns, Alain Tho- - 
mas, 2. rue MiromasnQ. (BMM5). 
Opened aB dan ex c e pt Sundays 
BM famdttime. Ends Tune 27. 

fet d Dnfy: meefiterraneaa blues. 

prtS^te^^te^Duf^msgfcutti- 
verse. The espanses of colour are 
mflHng wife; people - people In ree- 
teuiaaia , people at concerts, peo^e 
end bosses at the races. Even the 
trees are aUve with countless leaves, 
regattas with countless boots. Only 
the nodes —am oddly unoomfor- 


Ends June 20. 


Vtakac Palazzo GraskbTha Ardmbol- 
tfa dheft ■ Hff hl M «wt rfmnk«w» 

wt hiMtion centred on Aenegfecled 
16th century MQaneee mann eris t 
painter. Gfusmne Arcfmhabki. 
wadh ^pedatmto Ms own fife- 
time for Mi extraordinary compo- 
site po r tr aits , is winch the features 
of die sitter would be mmrineert of 
the tools of bis trade. - Pots, pus 
and vegetables for the cook (which 
turned upside-down beoomee mcre- 

ly a stiQ-nfe) or books for the Qbrar- 
ian.- ArdmboMo spent most <rf his 
working fife outside Italy, in the ser- 
vice of three Hapsburg em p erora. 
Indoded is Ms ar res ti n g portrait of 
Rudolf n as the Etruscan god Ver- 
tuntn, made op erf fruit, vegetables 
andeaixofoonLThee^dMtionoon- 


totos wudre by ArdtsbokSrt ww 
tei s a ri such at Lesautio. Purer 
• end^M^.rewafias£bo<*(rf ertfete 

Srefati- 

ontury. It attempt* to draw Uxtks. - 
some obvtaa (Drii, de Otiska Mea 
Bay and Docbamrt. Soda May 31- 

NCTHCTUNWi 

lawtradsip. Van Gogh Usama* 
Thfatr pri ntin g s by sew* rf the 
iNdfeg haehMtete and Imprw- 
sfonfate on loan trm Mew York's 
Metropolitan Museum. tVtengn g 
from Driacnfat to Gauguta. wMl « 
springing of Vtocaut ran Godfcfofc* 
voorHe «xi^ tftere are fandsnhw 
by IffOrt, Ctaot aad Monet a Ote 
same stfil fife, Heart* colourful 
and su prem el y we ff a ssu red Yonac 

OHBfetheCMiaMsfnMeJp.ua 
Pissarro’s *w»Hw Boulevard 
Mbotaattre. Bod* May 1L 


Madrid, Daniel Auhry. American 
tarns. Pho*ogrra*« hr young artte* 

in Ms many travels. Ac hate Son 

Bernardo WL -Seal* June 5. JHaatorefana of Japans ami ate" 

Madrid, Ontro de Aria Brine Sofia. Art from the ^ 

Senta Isabri SL BanmbQden S Ger* Joint effort by Tokyo Nritoeri Mu- 

man sculptors fa Madrid Ends Juna stum. AsaM MwpWW® 

33. Ahioc American Dreams. USpho- British Museu m bongs back to the 
tafrapba by 35 p b otegr ertwra from Orient some 150 works of pstoficg, 

Madri d. Dteg^^ A ret rospect iv e 

20tb oentaxy top expboent of BCext- century BC) to ado p eriod 
am art, tide show offers an ample (I BOO-1888}. Many are bring men 

cofiection of Ms works, including a outride Britain for theflrsttime. Ka- 
fihn with Me fresco murals, 160 oil pedalfy notable are the rare Tang 
and tempoca pafatfoga. 119 book Ob period P nnhusn g silk banners from 
lustrations. Cnutrode Arte Rrina safe’s early 20th century expedi* 
Sofia, Santa Isabel 52. Ends June 7. tions to the SUk Road tWtoately 

Madrid, a Franck Auobadt nrtrospeo- wrought metalwork o nims l* by re- 
five. 40 og p rintin g s by the Ge rm a n duadant 18th century Japura* or* 
artist vrito moved to the UK In 1939 moor makers are also ejwcnfichfog. 
and is an exponent of tha figurative Tbi* exhibition is part of the fond- 
expressionlsm t reifithm . Tms show, raising efforts tow io da fee ballfeag 
apooaarad hy British Gtemcil, wh a separate Japanese Gsitery in the 
re oe u fl y seen in Hamburg and Eh- British Museum. Tokyo National 
tea. Centro d» Arte Brink Sofia, M us e u m. Ueao Park. Eads June 7. 

■ Santo Isabel 52. Ends Jun l. Clomd Mrtnt 

Auguste Bodfe. M broctw Jenattan Borefeky: 61 wort* frumth* 


Ctm* nsufn *M*m’ tta «fe«pi 

rtfttT Smlth soo teH M i us i ll w 
masrt», Mm * « 

SSgls» QrsmM by teattle 

SSwfef. L S Ommmtr. u>« 
feu reflected the frahtensaf fea 

itora during their bdydeyftw dw 

17ft to eerty JWi ceoferira. as diffl' 
nut ft 3th Are)- „ v 

lfuimirdUn fkrri “ *+r 

J tori Portfrwj«w«awt 

tour Aswricte ioriotfiBW works by 
MeMV lt*Boir. S eurat and 
Gugidto Ends June zj. 

- CMCAOO 

Art ferifiMR Wra im G«*A 

exhibit Of Larttgne's fetta photo- 
graphs Shows th* evocative panora- 
mas and fleeting awewfJ ts on fee 
streets of Paris between the wars. 
Ends June 28. 

TOKYO 


National 
t June 7. 


figures and 40 watercolours on loan 
by Mus ts Rodin. Catalogue show* 
artiste in ft iiw ob Cstehmya*s rat 
schools and the Noncentisma. 
Mnieo de Arte Modmo, Pteqne d» 

fe r% nAmAmtm IIU^^ 


young Now York 
artist fe an integrated show of In- 
stallations, painting, ac id pet i re. 
fight sound and movement Two Im- 

metis piece*. The Man wife a Brief- 
case and Hammering Men, are in- 
cluded. The latter. Juxtaposed 
against a humane Ja p an tes God- 
dess of Mercy statue, makes on 
ironical comment on local culture. 
Male Aggression and Makknfona 
Woman parody American pop cul- 
ture. Tokyo Metropolitan Art Mu- 
seum, Uano Park. Eads June 7. 
CZoasdMoa. 

Continued on Page 25 


S1AVANGER 


iug ge nbrim i The first r etrospec ti ve 
teJoan lfiro sfeoe Ms deafefc I’m 
i nc lu de s more than 150 pieces, in- 

chidinfl DtintlDfi obtocts. coUacu. 

cwniiCi and on p^pf r fhftt 
explore the actistfa axperfmental 
media, methods and primitive fespi- 
retkms. Ends AngS. . . 


Special Subscription 


HAND DELIVERY SERVICE 


of the FINANCIAL TIMES now available in 


OSLO, Si AVA N G t R 5 E R G t N 


Ybu can obtain your subscription copy of the Financial Times, personally hand-delivered 
to your office h the oenDe of the cities indkated, for further details contact: 

K. Mikari Henid RnsnoriTim** Scandinavia or Marianna Hoffmann 
MOstergadda DK-WOOGoperihegen NsrvesenASOslo 

Denmark TW:( 1)13*441 Noomylki: 0)684020 


Piping hot water without 

the piping. 



For busi ne sses using small amounts of 
hot watei; what electricity does away with 
is just as important as what it brings. 

You don’t get heavy installation bills, 
because electric water heaters need far less 
pipework 

So you don’t getyour business disrup- 
ted, either 

You don’t get problems over where to 
put your system, because electric water 

heaters can fit easily on any wall. Or out of 

sight-under a sink 

You don’t get distribution heat losses. 

You don’t need flues because you have 
no fumes. 

And you don’t need frequent servicing. 

But you do get lovely hot water - at a 
very reasonable cost. 

For your information pack on energy- 
efficient dearie water heaters just send us 
die coupon or phone Freefone jl 

A. 

r~!P\ I 

an deqmpmcm from Hcorrae Sadia and Samon, VJL_J 
j PosttaElectriciiy Publications, PO Box 2. aANTOre . 

| Idiham, MhldIcsecTW14 OTG. HEATRAg SADIA 




I 


Financial Times Friday May 22 1987 


Cmema/Nigel Andrews 


Werther/Covent Garden 






An apocalyptic family album 


Desert Blown directed by Eugene 
COIT 

Foreign Bedj directed by Ronald 
Neame 

Three Men end a Cradle directed 
by CoSne Serre&u 


“X loved -movies, books, 
Wonder Woman and my grand- 
mother," recalls the heroine 
(Annabel Gish) in Desert 
Bloom, introducing the story of 
her teenhood in 1950s Las 
Vegas. This is not the Las 
Vegas of “The Strip — that 
brash ribbon of gambling dens 
and gaudy lights which is the 
town's claim on world fame — 
but the sleepier, shanty-style 
community that spreads around 
it, lapped by the wastes of the 
Nevada Desert Eugene Coir’s 
splendid film homes in on one 
family on the desert's " edge 
and the way they represent an 
era In- microcosm: an era of 
tragical-comical tensions as 
America tries to recover from 
World War Two and to take a 
step' Into the unclear future. 

Hum . (JoBeth Williams) 
harassed, patient, still pretty, 
keeps the house together. The 
kids try to run all over the 
place. And stepfather (Jon 
Voight) is a war veteran with a 
short !lse and a long list of 
grievances. He yells at his 
family; he is veiled back at by 
his wife, who taunts him with 
bis impotence — " Big war hero, 
shooting blanks!” And mean- 
while he tinkers with home- 
made radios, as if hoping to 
tune in to a world more 
sympathetic to his quirks than 
his own family. 

-Into this household, a human 
powder dump, walks thirtylsh 
Aunt Starr (Ellen Barkin). 
Starr by name, star by nature, 
for she was once — and no one 
is allowed to forget it — “Hiss 
Hinnemuka. Nevada." She has 
a breezy charisma, she dresses 
With what in Nevada passes for 
high style, and she is deter- 
mined to run through most of 
the male population of Las 
Vegas before she derides if 



JoBeth WflUams and Jon Voight in "Desert BloonT 


there is a Iff light in town. 

Corr treats their story like a 
family photo album come 
malignly to life. Moments 
which start out posed and 
eleg&ic keep twisting into farce 
or. near-disaster, if Voighfs 
stepfather is the volatile nuc- 
leus of this family, Batkin's 
Auntie Starr is the character 
bombarding him with electrons. 
She dismays him by being a 
breath of new America, but she 
also attracts him. When she 
and Voight are caught in a 
moment of flirtation, the row 
that ensues, involving the 


whole family (plus a neighbour 
or two) becomes the Aim’S 
grimly hilarious centre-piece. 

Ma tching the funny-appalling 
tensions in this nuclear family 
are the similar tenninrui build- 
ing up in nuclear America. The 
coming A-bomb tests in the 
Nevada desert cast their then 
Innocent-seeming shadow 
across the town’s life. There 
are “Duck and cover" civil 
defence lessons in school; 
nuclear jingles on the radio 
(“Rise and shine, it’s A-bomb 
time"); and a contagions line 
in trendy local advertising: 


(Voight renames the petrol 
station be runs, “Jack’s Atomic 
Gas”). And at the movie's end, 
it is out with the family picnic 
hamper, on with the dark 
glasses, and off Into the desert 
to watch the apocalyptic bloom 
of the future. Nuclear naivety 
was alive and well In 1950s 
America; and Desert Bloom has 
the power to make today’s dis- 
illusionment gaze in fascinated 
awe at yesterday’s innocence. 

★ 

Peter Sellers - had, we 
thought, had the last word on 
funny Indian doctors in The 
MiMUntahress. It is not a joke 
that bears infinite repetition, but 
in Foreign Body it gets infinite 
repetition. Victor Banerjee, 
formerly an unfunny Indian 
doctor in A Passage To Indie, 
here plays a penniless immi- 
grant from Calcutta who 
decides, with no medical 
qualifications, to set up busi- 
ness in London's Harley Street 
A high-wit tale of Jonsonian 
quackery might have unfolded. 
But all that unfolds here, like 
a badly made deck chair, is a 
wooden imbroglio Involving 
mistimed gags, effortful farce 
and contributions from large 
numbers of gainiossiy em- 
ployed British actors. 

* 

The French comedy Three 
Men and a Cradle deposits a 
baby at the door of a Paris 
apartment shared by three 
devil-may-care bachelors (Andre 
Dussollier, Roland Giraud, 
Michel Boujenah) and requies 
them, in default of any more 
immediate solution, to look 
after it After the initial shock, 
and the early tribulations of 
learning to change nappies and 
heat mufc. they come to love 
and care for the little perlsh'er. 
They are even upset when its 
mother finally comes along to 
remove it 

The audience is less upset 
The film's first half hour is 
funny, cautionary and full of 
character. Thereafter the heat 
rather goes out of the proceed- 
ings. But the film has appealed 
to America sufficiently to stimu- 
late a Hollywood re-make which 
is already m the pipeline. 

★ 


SpaceCamp directed by Harry 
Winer 

Best Shot directed by David 
Ansp&ogh 


Even without the benefit of 
a plot the background of Space- 
Camp would seem like an ela- 
borate fantasy to young British 
audiences. But the setting, a 
simulated space base where 
children learn to pilot realistic 
space ships, experience weight- 
lessness and bounce around in 
space suits, r Bally exists in 
Alabama. Not so much a case 
of per ardua ad astro, as parents 
who can afford to pay for this 
elaborate educational holiday. 

When a friendly robot presses 
the wrong buttons a group of 
children (headed by Lea Thom- 
son of Back To The Future) 
find themselves launched into 
orbit in an Inadequately pre- 
pared crafL The technology 
is there but it is not yet con- 
nected properly, so it is down 
to good old-fashioned resource- 
fulness to save the day and 
bring them safely back to earth 

The Fifties get a traditional 
treatment in Best Shot where 
underdogs in small town 
America strive to make a suc- 
cess of the local high school 
basket ball team. Director 
David Anspaugh has created a 
nostalgic world of soft autum- 
nal days and permanent blue 
skies and made the most of 
an excellent cast. Gene Hack- 
man plays the coach with a 
secret past, Dennis Hopper the 
alcoholic ex-basketball star, and 
Barbara Hershey is their chief 
opponent, a teacher who does 
not want her one academically 
promising pupil side-tracked by 
his sporting skills. 

More than enough material 
for a story about the powers of 
determination and the despera- 
tion that can spring from the 
need to be somebody, the film 
is flawed only by too many dis- 
tracting sub-plots — unnecessary 
seasoning for strong, simple 
ingredients. 

Aim Totterdell 


A tepid Massenet revival at 
Covent Garden on Wednesday. 
The cast and conductor, mostly 
new to their duties here, 
showed sincerity, a general emo- 
tional involvement; the main 
roles were taken by young, 
good-looking people who carried 
their costumes with a certain 
aplomb; the show had at least 
been decently prepared. But It 
was a notably untutored per- 
formance. In this opera Masse- 
net reached perhaps the peak 
of his intimate, conversational 
style — and reached, too, the 
point where that style most 
closely approaches operatic 
tragedy — but almost all the deli- 
cacies and niceties of delivery 
necessary to any revelation of 

the substance below the surface 
were missing. 

Michael Schonwandt, the 
young Danish conductor, 
seemed to approach the score 
as if it were Puccini-manque. 
Climaxes, even those of the 
mainly quiet-tempered first act, 
were overheated, whereas the 
long passages of limpid flow — 
in which word-setting, vocal 


Max Loppert 

shape and instrumental accom- 
paniment are finely conjoined, 
and on which so much of the 
dramatic matter is carried — 
were brusquely or else uncer- 
tainly handled. In Act 3, where 
the opera most robustly sur- 
vives such treatment, the per- 
formance developed a certain 
superficial excitement; but to 
anyone who loves the whole of 
this opera, it was rather a sad 
evening. 

It would help if (apart from 
David Wilson-Johnson and Staf- 
ford Dean in minor roles) any- 
one in the cast had more than 
a vague idea of bow to project 
and communicate in the French 
language. The most serious 
failure in this respect was de- 
monstrated by the Charlotte of 
Agnes Baltsa, by and large a 
distressing miscast in this role 
of un emphatic exchanges and 
slowly-built inner fires — the 
angular non-legato phrasing and 
jerky register gear-changes 
proved often painful to hear. 
But Linda Kitchen (Sophie) 
and William Shimell, dis- 


appointingly strenuous and 
pushed-sounding as Albert, 
have in their less important 
ways much to learn about Mas- 
senet singing. Words, words, 
and words again: how much 
they matter in French opera ! 

There remains Francisco 
Araiza, taking here his first 
romantic tenor role in London. 
There Is promise in his 
Werther: the voice seemed a 
shade small for the house, and 
the top was sometimes a trifle 
unfocused, but it was never 
forced, and there were pas- 
sages of liquidly tender half- 
voice — “ Pourquoi trembler 
devant la mort?". the first 
phrases of the Ossian strophes 
— that contained real poetry. 
But the general shortage of 
specificity, of vividly meaning- 
ful purchase on the words, is 
a charge that has to be re- 
peated even against him. Last 
night's Werther was not the 
emptiest sample of Inter- 
national Opera we have had in 
this theatre, but in its own 
way it was peculiarly 
disheartening. 



Robert Mdntosh and Ben Omvnkwe 


Alasulr Muir 


The Westwoods/Etcetera Theatre 


Martin Hoyle 


Le Nozze di Figaro/Cardiff 


- The eight actors in this 1964 
Alan Ayckbourn bagatelle, 
done at Scarborough but re- 
ceiving its London premiere 
above the Oxford Arms pub In 
Camden High Street— play, as 
you might guess, two charac- 
ters. For teenage Tidge, cool 
young Patricia, calmly maternal 
Trlsh and menopausal (and 
after) Pat are one. Ditto with 
schoolboy Robert, trendy Rab, 
married adulterer Bobby and 
rheumatic Bob. stretching in 
the autumn sunlight. 

} Or are they? This chronicle 
t of four generations is like an 
Escher drawing where the eye 
traces an ascending staircase 


point Characters and plot 
interweave, seamlessly change 
and Mend. Susceptible Tidge 
surprises bar father and his 
mistress in the park and flees, 
trailing the five yards of sash 
cord she had bought for her 
suicide. Years later mini- 
skirted Patricia's park-bench 
embrace with Robbie Is Inter- 
rupted by his daughter who 
runs off trailing yards of sash 
cord . . . And so It goes, the 
same pattern repeated 1» each 
generation as Inevitably as the 
ebb and flow of the waves cor- 
rugate the sands. 

The first half is devoted to 
the woman’s point of view. The 
nine events are repeated by 
different actresses, sometimes 


with identical dialogue, some- 
times subtly changed according 
to character. The men give 
their version in Act 2 ; and 
-Ayckbourn confirms that he is 
that rarity, a British playwright 
who writes sympathetically for 
women. Even when ostensibly 
justifying - themselves, Ayck- 
bourn males are crassly obtuse, 
ludicrously selfish. And, merci- 
fully, very funny. 

Against Frazer Taylor's 
simple design of cartoon 
scrawls, Vivienne Cozens 
directs an accomplished cast 
in a hugely enjoyable enter- 
tainment; an appetising hors 
d'oevore for the same author's 


National. Alison Boses eager 
Sixties trendy and Alwyne 
Taylor (who toiled with the 
Master in his Scarborough 
vineyard) as plump placidity 
stand out. and it must be admit- 
ted that the girls have the vocal 
edge, especially when giving us 
their Supremes. Another old 
Scarborough hand, Robert 
Cotton, reminds us that Ayck- 
bourn returned to song-as- 
comment in his backstage 
comedy, A Chorus oj Dis- 
approval. And Christopher 
Downing's frustrated schoolboy 
is beautifully fresh and naive, 
not least when, wide-eyed and 
apologetic, be confides I 
seduced her” of the older 
woman. Erroneously. 


It is hard to say precisely 
why a performance as well 
sung and played as the Welsh 
National Opera’s new Figaro 
should be ultimately so un- 
satisfying. Problems with Giles 
Havergal’s production are 
easily pinpointed: it is self- 
defeatingly hyperactive. Both 
innumerable supernumeraries 
and the chorus intrude on the 
action when they have no 
business to, dangerously inter- 
fering with the communication 
between the principals and the 
audience. 

The constant movement on 
stage, the need for people 
always to be “ doing something" 
— especially in the case of poor 
Susanna, whose constant anima- 
tion puts one in mind of the 
old Rank Charm School and 
the need to be “ vivacious " — 
6oon grows wearisome. From 
row F the temptatiton to shout 
“for Heaven's sake stand still * 
was almost irresistible. In 
among all the bustle the essen- 
tials were missing: the warmth 
and intelligence of Susanna, the 
resentfulness of Figaro, any 
sense of confrontation between 
master and servant 

This can be sorted out by a 
good staff producer (Mr Haver- 
gal’s Figaro, unlike his Barber 
last year, is at least redeem- 
able) , but an Wednesday there 
was a corresponding restless- 
ness, a sense of being button- 
holed and shouted at from the 


Rodney Milnes 

pit. While one admired the 
clearly articulated playing of 
the orchestra under Sir Charles 
Mackerras and the clarity and 
vigour of it all, it was also for 
the most part extremely loud 
and not so much fast— though 
it was — as driven. This en- 
couraged the singers to deliver 
at a steady forte simply in order 
to be heard, and the result was 
a bludgeoning Figaro sadly 
lacking the nuance, the purely 
musical pleasure that one takes 
for granted in the score. 

This was doubly odd in that 
the elements of “authenticity" 
In tiie performance — piano 
acco mp a ni ed recitative, appog- 
giaturas accorded ill with a 
large orchestra playing at full 
bat, with Bartolo's “Vendetta 1 
sounding like something out of 
the Verdi Requiem, and the 
Wedding March threatening to 
turn Into a March to the Scaf- 
fold. 

The editon chosen was fasci- 
nating — that of the Vienna 
revival of 1789. This involves 
the substitution of “ Un moto di 
giola ” (K 579) for “ Venite in- 
ginocchfatevi,” which works 
well, and of “ A1 desio ” (K 577) 
for “ Deh vieni,” which doesn't: 
it is on exquisite aria but 
simply lasts too long for this 
stage of the plot The Count’s 
aria. In which Mozart restored 
difficulties- be had removed 
before the premiere, uses a 
higher tessitura and is more 


florid: If you have a baritone 
who can manage it — which the 
WNO certainly has in Donald 
Maxwell— then it should be 
sung since it presumably repre- 
sents the composer’s first and 
last thoughts. The revised 
“ Dove sono.” omitting the 
repeat of the first section, is less 
successful. 

Apart from Mr Maxwell, in 
excellent voice and presenting 
the Count as a dolt who thinks 
he’s rather clever, the cast in- 
cluded Anne Dawson as Susanna 
(singing exquisitely when she 
wasn't having to hurtle round 
the stage like a teetotum), 
Elaine Woods as the Countess 
(a fine voice, but curiously 
strangulated Italian vowels), 
Robert Hayward as Figaro 
(nicely phrased, but his drama- 
tic reactions need considerable 
sharpening), Peter Rose (an 
outstanding Bartolo), and Cat- 
riona Bell as Marcellina (good 
in her aria, but lacking weight 
in the middle elsewhere, which 
Is probably Mozart’s fault for 
writing the role for two dif- 
ferent voices). 

Sue B lane's permanent set 
and costumes are airily elegant, 
and practical save only that the 
closet door in Act 2, which is 
rather important, most be in- 
visible to a good third of the 
audience. There are the ingre- 
dients of an outstanding Figaro 
here: it just needs a little extra 
work. 


BlancpaiN 



Sow 1735 thsokfestnm» in swiss 

But don't expect to find a qusz in a Blancpam watch, 
fou won't-Anri you never wilL 

,%{Zn854032,Tk45S 




Arts Week 

Continued from Page 24 

Music 

LONDON 

Royal PHHuumanle Ordwstra con- 
ducted by Nicholas Cleobuiy with 
Andrew Wilde, piano. R ossini. Bizet, 
Rachmaninov »nd Dvoffik. Royal 
Festival BaD (Mon). (9283191). 
London Spuphoog Orchestra conduct- 
ed by Leonard station with John 

r jit l p*tw C Bnfcg, Prokofiev and 

Tfchaikovsky. B a rbi c an Hall (Toe). 
(6388691). 

BBC Welsh Symphony O rchestr a con- 
ducted by Jbujbs Looghran with Pe- 
ter Donohue, piano, Glinka, Proko- 
fievKnd Tchaikovsky. Boyal Festiv- 
al Hall (Tae)- 

LaodoB Batch Oicfaaatn directed by 
Tessa Bobbins Khambatta, violin. 

viwM J Haydn and BottesmL 
Queen Elizabeth Hall (Toe). 
(8283191). 

w« iUu.i —Mil. Orchestra ml Cbocos 
c ondu cted by Riceardo Moti. Bee- 
thoven. Boyal Festival HaH (Wed). 
Royal Phnharmaie Orchestra con- 
ducted by Enrique Bette with Julian - 
Lloyd Webber, ‘cello. Dukas, Elgar 
and Tdurikovitky. Royal Festival 
Wall fTTitir ). 

Academy of Sb Martin -to-the- Field* 
directed by Sana Brown. M o zar t. 
Schoenberg and Tchaikovsky. 
Queen Ettzabetb Hall (Dnir). 


Dar oqne Marie dusk's Annicie in 
concert -amrioa. TtMmatih Ba- 
roque Orch estra and Ensemble Vo- 
cal de la Chapelle Royals - Pari* 
conducted by Alan Qntis with 
Montserrat Caballe (Mon, Wed) 
TMP-CJmtelet (42334444). 


The offices of a municipal 
local authority are brightened 
somewhat by the presence of 
a pink briefcase, or perhaps 
several of them not to mention 
the life size foam rubber 
parrot, three Swedish perform- 
ance artists and a rampant 
member of the Victoria Gillick 
Apostolic Brethren. 

There are 20 characters in 
Michael Birch's sprightly satire 
for the General Theatre Com- 
pany, and they are all played 
by three actors. The above- 
itemised absurdities are sur- 
prisingly well integrated into 
a plot of corridor machinations 
and political wheeler-dealing. 

The housing department is 
facing the prospect of local 
elections and, beyond, a Parlia- 
mentary candidate selection 
process. Councillor Barra- 
clough Is pursuing an affair 
with his true blue bun-scoffing 
secretary while trying to appear 
moderate in the local Labour 
ward and simultaneously work- 
ing hard to retain radical credi- 
bility. The apostolic protestor 
thinks that housing policy bias 
towards single parents, gays and 
gerbil-fanclers will encourage 
his son to leave home and take 
up unconventional sex. A 
slinky Rastafarian seeking a 
ground floor flat loses his rag 
and declares he is a human 
time bomb; “You’re in the 
wrong department ” is the sweet 
riposte. 

We also have a paranoid lady 
department head who has reared 


Hlndd's Oratorio Theodora, English 
version, conducted by Jean-Qaude 
Malgoire with the Tallis Choir 
. (Mon, Thru). Salia FavartOp4ra Co- 
znique (42960611). 

Ensemble Or d h ate r a l de Paris con- 
ducted by Emmanuel Krivine, Mi- 
chel Portal, clarinet, Philip Bride, vi- 
olin solo: Mozart, Haydn £ Etae). Salle 
Pleyel (45610830). 

Orchestra Ocdonoc condncted by Clau- 
dio Scant) ne. Orchestra 
Choir conducted by Jean Sourisse: 
Verdis Four Sacred Pieces flue). 1 a 
. Trinrti church (42337289). 

Orchestra de Paris soloists - chamber 
wnirif by Debussy, TSsne, fiehmH* , 
Caplet (The fiJApm). Salle Pleyel 
(45610830). 

vrt— Herfcfn, piano: Schubert, 
t a*j±, Rene Herbin. Beethoven 
(Wed). Salle Gavean (45632030). 

NETHERLANDS 

Ro tter d am, Doelen. Organ recital by 
Arie Eefizen Bach, Franck. Keijzer, 
Wider (Mon). (4142911). 


Pops Orchestra. Skftch Henderson 
conducting, Smith narrator. 
Mixed programme (Wed). (247 7800). 

JnflHard Concert* (IBM ' Gallery): 
Oi»miw Music of RnssetL Conk. 
(Wed, 1230). 50th & Madison. 

New York Philharmonic (Avery Fisher 
Hall); Giuseppe Sinopoli conducting. 
New York Choral Artists directed by 
Joseph Ffaimmerfelt and Brooklyn 
Boys Chorus directed by James 
McCarthy. MjiHTcp (Diur). T-i tiffin 
Center (8742424). 


WASHINGTON 

Nations! Symphony (Concert Hall): 
Mstislav Rostropovich wiwihirtina i. 

Albert, Tchaikovsky (Tbur). 
Kennedy Center (2543776). 


CHICAGO 

Chicago Symphony (Orchestra Hank 
Sr Georg Solti conducting. All- 
Strauss programme (Tue); Sir Georg 
Solti conducting, John Sharp, 'cello. 
Dvottk, Beethoven (Thar). 
(465 am). 


Barcelona, Philippe Herre w eghe con- 
ducting soloists play in g original in- 
struments to music by Solar, Cerer- 
ols and Vails at Solo delTmeO, Pla- 
za del Rey. (Wed). 

Madrid, chorus and Orchestra of 
Barcelona's Festival of Early Music 
with La Chapelle Boyale’s conductor 
Philippe Herreweghe, soprano Mo- 
nique Zanetd. contralto Sal- 
banya, tenor Joan Cabero Master- 
pieces of Catalonia's baroque music 
(Tue); Teresa ZylisGara (Wed). Tear 
to (f* O rlente. 

NEWYOBK 

Carnegie rt*R n; Manhattan Philhar- 
monic. Peter Taboris conducting. 
Mozart, Brahms (Mon)- New York 


USSR State Symphony Onefaestm with 
Hirokp Nakamur a, p iano. Glioks, 
Tchaikovsky. Shostakovich. Tokyo 
Bunka Kaikan (Mon). (235 1681). 

Kathleen Battle, soprano with Japan 
Philharmonic Orchestra ftmHnrtwi 
fay Seiji Ozawa. Arias and songs. Hi- 
ts mi Hall. Showa Women’s College, 
Sangenjaya (Mon). (5733588). 

Das Gewandhaus Orehester Leipzig, 
conductor: Hurt Masur, Brahms, 
Beethoven. Sundry Hall, Akasaka 
(Tue). (5051010). 

Martin Hnmstrin. ceDo with Eugen 
Jakob, piano. Beethoven. Schubert. 
Brahms, Martino. (Tbur) . (4080958). 


Michael Coveney 

three hateful yuppie sons and 
sees closet Conservatives every* 
where, a dilapidated curator 
with an overworked sense of 
history, and a secretarial health 
freak- The two main springs 
to the action are the attempt 
to replace the councillor with 
a black, supposed gay, baby- 
dutefting Parliamentary candi- 
date, and the nailing of the 
culprit who leaked a policy 
document in the briefcase. 


Ingeniously directed by Jude 
Kelly on a fluorescent black, 
white and pink street mural 
setting (designed by Brian 
Looney), Susie Baxter and Ben 
Onwukwe re-establish the good 
name of small-scale political 
revue, while certain weak punch 
lines and dead patches are for- 
gotten at the sight of Robert 
McIntosh’s rogues’ gallery and 
his star portrait of the weak- 
kneed architect and closet 
blues performer. 


Georgian State Dancers/Palladium 


Clement Crisp 


There are no ambiguities in 
Georgian folk dance: sexual 
roles are clearly defined, and 
so are dance identities. The 
girls are all extremely pretty, 
wear flowing floor-length robes 
and glide about the stage as if 
on castors. The men are war- 
riors who sport soft boots that 
enable them to dance on the 
knuckles of their toes, and they 
further spin on their knees or 
crash down from a leap on to 
their knee-caps. Swords and 
doggers are brandished as their 
Teet skitter through the fastest 
Imaginable steppings: it is 
macho enough to make Fopeye 
seem slightly e ff e min ate. 

The permutations passible 
with such ingredients are not 
many. The Georgian State 
Dance Company, now installed 


at the Palladium, rings all the 
changes in an evening of slick 
and cleverly staged numbers 
that give the dance of its people 
a high theatrical gloss. 

Doe-eyed girls drift through 
charming patterns; mock com- 
bat brings the flash of sparks as 
sword meets sword in the men’s 
encounters; accordions and 
drums are a tireless accompani- 
ment. The evening is in no way 
demanding, but the energy of 
the ensemble and the uncom- 
plicated nature of the enters 
tainment — for all its profes- 
sional assurance — bring the 
rewards to he found in such 
directly communicative dancing. 
It is impossible not to respond 
to the combination of charm 
and bravura. 


Saleroom/Antony Thorncroft 

Windsor jewel unsold 


Greed comes before a fall. 
The sale of the Duchess of 
Windsor’s jewels in Geneva in 
April was such an extraordinary 
success, with Sotheby's esti- 
mate of £5m being exceeded 
six times, that owners of jewels 
with Windsor connections 
Imagined they were in line for 
a fortune. 

But an ivory, sapphire and 
diamond dip which the Duke 
of Windsor gave to his nurse, 
Oonagh Stanley, in 1972, 
shortly before his death, was 
unsold at Sotheby’s yesterday 
at £30,000. Sotheby's had 
placed an estimate of £3,000- 
£4,000 on the dip, which was 
made by Cartier, but the high 
prices at Geneva encouraged 
the vendor to raise the reserve: 
and she raised it above the 
market’s desires. 

In the same jewel auction 
Sotheby’s sold a collection of 
Giuliano. Castellan} and Revival- 
ist jewellery from the late 19th 
century. A gold, seed pearl, and 
cornelian bracelet, by Castel- 
lan!, of around 1865, did well 
at £17,050. 

Sotheby's had a very en- 
couraging sale of post-war and 
contemporary art by European 
artists on Wednesday afternoon, 
which totalled £847,620 with 7.8 
per cent unsold, a very low 
figure- While Americans are 
prepared to pay high prices for 
contemporary art there has been 
some hesitancy on this side of 
the Atlantic. Many dealers are 


scared of allowing their artists 
into the salerooms — unsold 
paintings would hurt their repu- 
tation. 

Top price was the £50,600 
paid by a private collector for 
Alexander Calder's "Twisting 
form," an abstract oil whirb 
carried a top estmate of £12.000. 
“Untitled painted in 1958 by 
Asger Jom, went to the dealers 
Star Diamond for £40,700 and 
"Grin” by the same artist just 
beat Its upper forecast at 
£34.100. "Pierre de Craon," a 
1958 work by George Matbieu, 
doubled its estimate at £29,700. 

At Phillips a tinplate clock- 
work bus, made by Bing around 
1911. trebled its estimate at 
£9,350, just short of the record 
for a Bing toy. The sale did 
very well, with even a 1960's 
Dalek (in its original box) 
making £71. 

■* 

The Arts Minister, Mr Richard 
Luce, has put a six month 
export stop on the version of 
Van Gogh's *' Sunflowers " 
which Christie's sold in March 
for £24.75m. However this is 
little more than a gesture. The 
chances of any British institu- 
tion being able to raise 
£25,087,500 (the current mar- 
ket value placed on the paint- 
ing) are negligible. The 
Minister acknowledges the fact 
by stating that if no serious 
effort has been made in the 
next six weeks it will go to its 
new home in Japan. 








FINANCIAL TIMES 

BRACKEN HOUSE. CANNON STREET; LONDON EC4P4BY 
Telegrams; Fmanfimo, London PS4.Tetex: 8954871 
Telephone: 01-2488000 


Friday May 22 1987 


Asset prices 
and inflation 


UK DOMESTIC APPLIANCE INDUSTRY ; 

Dilemmas of the filial cycle 


T he SHAKE-UP in the rival Electrolux 
British domestic appliance markets, 
industry Is entering its At ■Whirlpool. 

final cycle. Since the turn of deal Is seen first 


By Christopher Parkes, Consumer Industries Blitor - 

in world to tot in the US seems inert- ha* been it* refusal toiideto scratch Wtmldf 5 erode any ttir- takeover tactics nl PWflP* 


markets. table. Most European markets price-cutting belter akdttar. It rent? advantages which sterling Electrolux. 

At ■Whirlpool, a successful are saturated, growing by be- tas Unproved Its position toy offer. V irtua lly unknown History, however. «* **• 

deal is seen first as a way of tween one and three per cent through de ft market ing, backed caftMde the JlK the brand eaegmaging. GEO bought a 

ssjLs^rsa zszstsr ** 00 "■ - t&sg&vfis* fssrtfa ”*:[>.* » 

given up the ghost Thom EMI's a life-saver. The pattern is dear. Electro- 5SreU“rf tour £***>£ 

wbite goods business has been Secure as it may seem in its lux now controls about 25 per point centra* and specialist*. It leutas«evm«i&ftfcft UK, which 

sold to Elecm»lux_of_Sweden. home ,***• MmI. has ^ for 


button and service 


titoto UK. 


IS INFLATION set to become If there is a recent .historical 1 ^ grid's biggest appliance learnt from the rationalisation Philips has 13 percent, Bosch- avoiSsroecial *ulu . StiH, Mr Samson ha* amhfr- could serve *» • 

a serious nrnblem. acain m the DaralleJ it is with the second I ■. /> ■_ k. r ..k.. -u.. in «k. ci , OMn.m -* ue A* * na avums spaoai oeas. ****** «. — — -» — ■ — ^mni« ,s> PHr!sh comn- 


a serious problem again in the parallel it is with the second 
developed countries? The sharp half of the 1970s. But whereas 


company, and TI Group's Creda which has taken place in the Siemens of West Germany 125 ^ grerarad customer*, mum- rt o ni . “ We 

. n. .. TTe HI, ACR .nnttiov TCm* *“ WUUiOU HHWUIOW, UUW — - 


recent fall in US bond prices the build-up in liquidity at that Jr “ ijlTj, 
points to growing concern on time in th~ hands of the oil 


nnd New World divisions are on US. ** To develop a fortress 
the block. mentally means yon have taken 


evr cent. AEG. another West ^ ^SSSls -BSSptf tS': 3** 

SES“ “SSW’-f. tree*. taking : 0rt««ttr teS_.*!S* 


the part of investors, while Mr producers round its way, via 
Paul Volcker at the Federal the banking system, to Third 
.Reserve has openly expressed World debtors, the present 
worries about the implication accumulation ^ of savings in 
for domestic prices of the fall Japan and West Germany is 
in the value of the dollar. being recycled to home buyers 
In Britain, meantime, the and consumers in the developed i 
B ank of England has had a world. The real question is not 


All eyes are now on Hot- 

ElJS; i? e T >, i^i ri >5 wings "and """venturing Into smaller firms. Hotpoint among Manufacturimr Is kept on * aramy.-HU thinking la* much " " it* “sprawling 

a&&K£« 


a death wish.” says Mr Sparks. Thomson Brandt and Indertt 8 ahead at most. 

So. ■Whirlpool is spreading its P** cent each and the 300 .. . . ... , , , 

win« and venturing into smaller firms. Hotpoint among .. Manufacturing is kept on *, 


aaiithul business. But export- 
fag fvpttances tt not the ml 


xo on simply the British company in 
Sttoa lM Channel markets, the jwjj* / 
look to inter- for such tactics may n« 

But export- passed. 

rt* EIec troIt., I* njWIr 

bqglms mach rationalising its sprawling 


City believes the natural home mg on the Continent still has 
for the TI brands is with Hot- ■ J«W &■ ^ remsm 


Bank of England has had a world. The real question is not point. Mr Jeoff Samson, manag- VVi a “f' 

mild attack of nerves over so much whether inflation is ing director, says he is interested battling for market share, A recent study from the Lon- 

buoyant money supply figures about to take off as whether this and hints that the only 

in April. It feels that soaring new recycling process will be stumbling block could be the 

asset prices, especially in the followed by another debt crisis price. “Opportunities such as 

bousing market, together with °f a different kind. this must be matched by lypftPT DTklgTDATIrifel 

strong consumer spending realism of price,” he says. rBiiBinillivll 

backed by readily available Warning signals Mr Christopher Lewiston, Imports as a % of total UK 

credit, are building up problems ^ _. w Tnanaein? director i< , „ 

for the future. .The evidence so far suggests ^wenes, by volume 


on tile Continent stiUhM ^ restricted to niche msrke*. «£* 1» 

a long way to go. There remain However. Hotpoint has the turne d ov er eight times a yea^ - HtMMi -■ , . perhaps its transatlantic link-up- 

about 300 manufacturers potential to Join the big league. A S amson dfcttntt I* ~ProdhMK. thriiv^^ ; aozn*' ? *Ott Of^integta- continent ft no place 
battling for market share, A recent study from the Lon- tion will do ma lt is told. Max- tfam - with an overseas; saanu- innocents abroad 


u gaining extra muscle through 
Its transatlantic link-up. Thv 
ju.nrtiMM*' h no ulace for 


backed by readily available Warning signals Mr Christopher Lewiston, 

credit, are bui ld ing up problems Tps new managing director, is 

for the future. The evidence so far suggests ,,„d emud to ^it as much 

It is, of course, the Job of that there is no cause for panic. ^cSess 

central bankers to worry about And if a whole raft of statistics “ hiC h wuld gSl H^Sm 
these things. And in the case on the financial behaviour of 7e a dersh!o in cooldS 

of particular countries and the British personal sector in 

marketeTtiJeir concern may have to. Bank of England’s May HfiSSS C 


IMPORT PENETRATION 

Imports as a % of total UK 
deliveries, by volume 


some” Justification. Yet ’jt is Bulletin is any guide, the prob- ‘SfriSStSnl “ 

hard to make a case that infla- lem is more social than Sundry and retrigerauon. 

Hnn ,'e thrpaipnin? tn becorn*. a economic. The ostensibly With or without the TI bosi- 


and further 
its interests in 


-r 


M 


tion is threatening to become a economic. The ostensibly With or without the TI busi- 

global problem, as in the early worrying side of the coin is tot ness, Hotpoint is the only in- 

1970s. The world is admittedly mortgage debt now represents digenous, full-range appliance 

awash with liauiditv but com- 3 higher percentage of the company of substance in the 

prices are Sill weak in v ‘ alue of to housing stock ton UK It is also the only one with 

terms of most currencies other at any time in the pa« 20 years any real prospect of being a 

than the dollar and economic ang. tot the ratio of personal force beyond itsnational boun- 

activitv is slack, Even in ^abilities t0 disposable assets danes. But to become an inter- 

Britain which is now at the ton **** risen faster than the same national force, it wil have to 

g ttfoEOTmS league ^thl ratio for personal assets since reckon with the growth-by- 

offidai Snt to Mrs Thatcher came to power, takeover giants: Electrolux. 

tpShwiSv ^ °flat raoital^invest! Yet ^ rise 1x1 net weal* has Whirlpool Corporation of the 
relative^ flat capital invest- ^ signfficanL ^ taken ^ us ^ PhiIips of ^ Nethe r- 

ent the aggregate the figures are lands. 

Dismal reflection n ^sht be expected a deal with TI would put the 

...... * a penod of booming share GEC business in a position com- 

This suggests that inflation is and house prices, financial de- parable with that of WhirlpooL 
a localised phenomenon, which regulation and wider home the leading US manufacturer 
will tend to be associated with ownership. since itsnurehas- of Kitchen a in 


A deal with TI would put the 


currency weakness or sectoral 


iSSS^’devrtStion on Si- ^ oiats out - « tot to The US domestic appliance 

Mrts^costs aad the turnround building up the debt are. industry, which has seen the 

m *p?jJ L mlricprare IeStimate ** general, unlikely to be the number of prominent manufac- 
SiSs of far toll! 531116 as who are stocking turers shrink from about 100 to 

autorifles but m reason for U P ****** Revenue Just four over the past few 

them t?’ throttle economic suggest that the years, provides the model for 

younger and poorer households to consolidation process now 


since its purchase of KitchenAid 
last year. 


Mt-to ovens 

46 

86 

Spto drytes 

36 

04 

1-door 

refrigerates 

37 

46 

Fridfe-fraixais 

48 

33 


authorities, but no reason for 
them to throttle economic 


growth in the name of mone- «««? puurer nousenoios 

tarv probity face the highest debt service 

»» ,, D , rather die- 


years, provides the model for 
the consolidation process now 
going on in the UK Whirlpool, 


ratios. And the warning signals General Electric, Maytag and 
are there for all to see: seven White Consolidated have ab- 



ntal «»f!f>ftinra nn Mr, Thar- * lK mere iar au to see: seven v^jaaouaaiea nave ao- 

times more houses ewere re- sorbed most of the smaller 


cher’s record that inflation now 
appears to be running at a 


possessed in 1985 than in 1979; 


players or driven them into 
regional or specialist markets. 


hiehpr level rhan^vhen the wound 2* per cent of all out- regional or specialist markets, “spite toe relent^* takeover 
ToriL returned*** Mwer in standil, g mortgages were three The process took another turn gf °f Electrolux and 
lSs^nd^t^hiKhS: level th^ months in arrears in 1985. last year when White Con- Philips. 

ta Britein^s main competitor gifS 1 ? fig “ e h “ **** to ^ hSuoYiS. ^ *** . Rationatisaticm would pro- 

countries in Europe. But the a little. „ . brtJ y ** accelerated by the 

problems remains distinctively In most western countries . ^ ® ave Wlutwam, president entry of Whirlpool, with its 

British. Despite its exhorta- there is a case for more govern- °" Whirlpool, says: “ Who prime range of products and 

tions to private sector ment effort to educate the *? ows - m « f w more years redoubtable marketing skills In 
employers to hold the line on pnblic in the high costs of there may be ]ust one big combination with the power of 
pay, the Government itself has borrowing in deregulated finan- “ame. Mr Jack Sparks, retiring Philips. Marketing and good 
conceded fat settlements in its cial markets. And in Britain President, has considered the products are the main qualities 
own public sector back yard there is a need for a far greater possibilities and acted. which have enabled the market 

with obvious inflationary conse- assault on restrictions in tbe Whirlpool has recently been lea ^ere in Europe to fend off. 

quences. And house price infi- land and housing markets than listed on the London Stock Ex- soo ultimately absorb many of 
ation remains one of Britain’s any party has been prepared to change. Later this s umm er, the “e Italian manufacturers whose 


, Source: Association of Mroufacturars of Domestic Ssctrfcrt Appfiancoc 


despite the relentless takeover don Business School highlight* keting comes first.” 
tactics of Electrolux and the company as one of the most This approach k 


' - / 7 To BotpoJnt the TI auction 

• ~ • ■ : . offers a clear end Immediate 

•: advantage: it provides a meatw 

of filling tbe only gap In 
' range by offering Instant m*r- 

ket leadership in ftee-standing 
: ' cookers, one of the British >B*r- 

kefs mast import-rosfttant and 
■_ ■ profitable sectors. The Creda 

and New World brands arr 
. among tbe best known in to 

• m the US, tbe big four all ** 

^ offer a full product range, con- 
t - rf --J ttxrf to leading brands and jre 
I steadily Increasing prwsure- on 
the remaining independents. 

With a $ihn (£S98m> capital 
Investment programine under 
way at General Electric, Eleetro- 
«*m - van* lux promising to slash costs 

~ at White Consolidated by SlOOm 

. - - - a year aiid Whirlpool going for 

■J— ■ - « scale economies by cancentrat- 

.• . ■ — ’ ing manufacture in a handful 

•ttf of giant factories, they could 

y ' 4»st . became even more competitive. 

— - . ■■■■ The same could be true for 

m . m Hotpoint in Its home marker. 

- However, to way is far from 

dear. • 

Japanese companies (already 
* 42 s 4o dominant in microwave ovens! 

including Toshiba, Hitachi and 
Sharp, are known to ho keen 

.to enter the mainstream 

’ European appliance Industry. 

•. Mr Alan Sugar, the Amstrad 
computer and audio entrpren- 
eur, has also aid that he 
intends to expand into the 
• ■ ’ British appliance trade. 

• * - ' - Whatever the outcome of to 

facturer which will give us TI sell-off, Hotpoint will prob- 


the company as one of to most _This approach has helped commonality of piece, part and v- faeed the choi *L flf 
consistently profitable appliance Hotpoint to build market share design work," he suggests. - itv 

makers in Europe. Alone among in all appliances and to come __ j-tn... — rttner trying to uefena a Ur 


soli dated was itself taken over Rationalisation would nro- makers in Europe. Alone among in all appliances apd to come Thn» ■ other wavs. c oeiena a i.r 

by Electrolux. baWv teiSderaSS bv ^ Briflsh na^rfacturars. it has from nowhere ih"to booming -AmSa. ^an^^rorT^ £ortreM •«««*• 

Mr Dave Whitwam, president entry of Whirlpool, with its ® rluio could consider adopting tiw Whirlpool ethos?, 

elect of Whirlpool, says: “ Who prime range of products and to tactics of the once-dominant venturing oveness, or selling 

knows, in a few more years redoubtable marketing skills in charfafthe wttshbrz »«ker* in lem than five Italian names and produce **D and adding to GECS cash 

there may be just one big combination with the power of T ^ C ^ t y “f 8 ' • appliances for: bodging with mountain. . 

name.’ Mr Jack Sparks, retiring Philips. Marketing and good SSe vear? sSJSand . However, although it is well known continental brand The™ has 

president has considered the products are the main qualities “T strong to its home market and names. ‘ * „ ***. * .yt enUtion 

possibilities and acted. which have enabled the market 5521™ sterling favours exports at pro- , enough In to past tha. manag- 


sKvsssvns’a MaTtyssa =*rttszzwurs 

s!--!si*s5??jSaS st&szzsszssi force — ssjs* ises "? *? 


sterling favours exports at pre- 


Thcre has bee.i speculation 
enough In to past that manag- 


more virulent diseases. 


offer in the election manifestos. 


This autumn it takes a crucial 


reinforce 


New manoeuvres 
in the chips war 

PROPOSALS FOR some sort of as much to do with the frag- 
international agreement to mented nature of the American 


th e no business in the kitchen. But, 
»rt- one stockbroker points out, 
ther none of Hotpolnfs recent 
the requests for investment— In new 


For Philips, the negotiations « m aire "nm. its tormei 
indicate that despite its heavy ^“tages of scale were eroded 
concentration on electronics— overma nn ing, lack of Innova 


rouesit, once m mignty force, under licence from ,, acccss 10 ■ Minus, xor example, toox cooker capacity far its Cannon r 

is In dire straits. Its former siemens, which 1 51/2IS worit *» * prerequisite for mov- when It broke into the UK— brand, in thn W«)«h 

advantages of scale were eroded SiSan^ SSminv hStSSIw? ^ig overseas. The Whirlpool first providing machine* under ^l Wl _?i!. hl, ? sh t er 


35 “ £ dishwashtii overseas. The Wbirtpool first providing machine* under 

W tad toWnddSSSc totics in establishing * joint British names and later switch- 

YOU lead to tne npia passing v^nturA with «imnArt >iln Inirtn nun loVwJ 


operation, in expansion of the 
refrigerator business— has been 


appliances account for only tion and rising transport costs. ntTt ^ fi ~7~ venture with Philips support hft ing to its own tabdU reingerator business— has been 

.bSutlOpercSTofiS^S «»« its"'™' <*{?■ !£JLJ *1 Tl '“- AlUraugh tta potentM for "*«*• “W man be difficult 

sales — It intends to reinforce ^nger, has been taken over by acco g ™ 2 »ampso . Mr Samson points out tot to making & grand entrance into 40 say no to a division which 


regulate 


semiconductor industry as with 


conductors have surfaced in the capacity of Japanese com- 
Tokyo as Japan’s answer to a panies — and other Asian com- 
fitill unresolved dispute be- panies after them — to sell chips 


•tween itself and the US. 

Details of the Japanese plan 


very cheaply. 

Tbe history of the Multiflbre 


its white goods business, the 
better to compete with arcb- 


Right wheel 
in Malta 


Electrolux. Perhaps the most striking cost of setting' up distribution Europe is limited, it Is possible has town compound growth of 

Further restructuring similar feature of Hotpainfs advance and service facilities from that Hotpoint could follow, to 27 per cent since 1982,'* he says. 


UCiajlA VJ. uie JUtKUiBSe putu uj. uie muuuuii: Witflln 9 nroaV nf „ 

are not yet dear: although a Arrangement, which by special cowSi^em^otacS^ih^Sl? 
worldwide price floor for micro- dispensation of the General f D] WJJJJ j*iiSf; T 92 1 ^S2S’ 
chips is one option being sug- Agreement controls most of £ P m£?J “JS? “SSSS* 
gested. But ev^ withoirt the world trade in clothing and tex- Sectoi th? ilid ^ 
details, and even assuming the tiles, should be a warning lea- there reoorts Sth 

Americans accepted the plan, it son. First devised in 1974, the Sries \rtlTiSfn ^55 

is safe to predict that this MFA was supposed to give mills EuroManSjmmuninr 3 ^ 

“solution’’ to what started as and factories in the industrial- Ur0pean CommuilJty - 
complaint of damping by ised world a breathing space in .. The Kenario being vividly 
Japanese companies win he no which to adjust to price com- discussed under the warm Medi- 
more successful than -the bi- petition from poor Asian coun- terranean sun is that the Com- 


Men and Matters 


stories that it will join the tills week to set up an institute 
European Community. for the elderly on the island. 


complaint of damping by ised world a breathing space in ..The scenario .being vividly Beagan is also senainu a 
Japanese companies will be no which to adjust to price com- discussed under the warm Medi- senior aide for talks in Valletta 
more successful than the bi- petition from poor Asian coun- terranean sun is that the Com- Jrttii Fenecb Ad ami— who must 
lateral pact so painfully and tides. The MFA is still with us, mimity members, including s ~ cere ^J heheve roe 

mistakenly concluded last 13 ywn later, thoroughly in- Britain., are perparing the way dictum that a week is a long 
September. stitutionalised and thoroughly ^ or *talta to be admitted to tune in politics. 

* m u* restrictive, with another four underpin a successful first five- — 

yeMS “ Iea3t to ~ ffs ‘Siawas w „ . 

otooilyfloS ^.^LTt Bad precedent w eei Fa^ecb W ® n COVered 

of the General Agreement on If nothing else, that arrange- A ir . .r®". ,* en ®“ The insurance industry in 
Tariffs and Trade. It might also “ent illustrates the simple AQami 11211611 Pro- rh, 4- t,« 4«^ f™ h» 

look better, at least to the truth that schemes for manag- 




l ium oivi, AJl iJUUiC 

Baa precedent Fenecb Ad ami. 

If nothing else, that arrange- fiTS t . W6ek yeaec b 

ment illustrates the simple 

truth that schemes for manag- }!^ steni ^“Pcrat 

ing markets are easy to intro- to the mast He is m- 


Well covered 


The insurance industry in 
Guernsey is having fun by 
issuing a mock Lloyd’s of 


Japanese authorities, insofar as “ e m £* et L! re ****.% S tiutw^m EuraM nm.' London underwriting slip in 

its purpose is to plug the holes dime, bat extremely difficult to Settle GeozS)^ respect of a Gallo-Roman ship 
in a pact that has proved as remove. An admimstrative SSJSS^SStJSS^ui- that rau^t fire and sank off to 
leaky as predicted. solution ” to tho. rhin-nHoinff easiuBiveij win necessary mm- j _cT^ , >nwi 


remove. An administrative 
“ solution ” to the chip-pricing 
problem, however many coun- 


tary defence arangements — 


Island about L700 years ago. 

; Japan’s real motive in draw- SSTcumSS^a^hvmm whIch ** ** d ne ^® for ~ the The remarkably well-pre- 

ing up such proposals— appar- effectlve L. „aet^e could is^d’s north African neigh- served wreck of the eMbot-long 
ently a reworking of ideas al- a bad pr^dSt S hour. Colonel Gadaffi of Libya, vessel, which has been nick- 

ready rejected by the US trade diSsion^ftbeg re^SStions Indeed Gadaffi and the new named Asterix, was discovered 

representative — is to get nd of c £ ^ f uture 8 Maltese leader seem to have in St Peter Port harbour in 1982 

to 100 per cent tariffs imposed ’ . got off on the wrong foot The by a- diver, and raised three 

by the US last month on im- There “ ® Libyan minister for trade left years later under the direction 

ports on a range of electronic had precedent is being big Maltese counterpart. John of the marine archaeologist Dr 

consumer goods. That retalia- fgf The spectacle of two large riaiii, cooling his heels at Margaret Rule, 

tory action was calculated to “>S°“ L«°«4™ *“. ■ Malta’s Luqa airport the other Now the Guernsey Maritime 

Sli?" 5 3y wh “.? sUi “l™* *» » Trast, which wtTttt , up to look 


monitor chip prices and open moment when the Gatt is begin- I me etin g . 


It ha* produced a- stylish mew 
film about its role in to 1980s. 
lasting 30 minutes, which will 
he shown to the thousands of 
iTiaUvIS visitors who are escorted 

- around the Bank each year. 

"’.a*”*,.- The film -was made by Holmes 

Productions, a company chosen 
because of the' flair it showed in 
__ ^ , . the production of the television 

\ \ I /f 1 satire Who Dares Wins, and 

\ \ / l } l t t-I I t—i because of a trade record in 

\ \IJWA: I 1 i translating to complicated into 

\ jHvIr'Ml I _j the easily understood. 

I Him 11 It was the latter considera- 

//, i \ \ i ' tion which also prompted the 
\ " y/J Iff I bank to choose Brian Walden, 

J / y *— L l — 1 the political columnist and 

former presenter of Weekend 
\ World, as commentator. 

YY Cj m The result Is a film which 
combines scenes of the Bank’s 
Sn0*Em r^vTa^ HP traditional role as a printer of 
r banknotes, and guardian of the 
Treasury’s (and lots of the 

Lli— f-J- fw il TO other, peoples') gold, with a 

j / T s^^ gkR caa i useful layman’s guide to Its 

1 j jN/ jJB@5E5 ni33t mare complex operations in the 
| yrl f ipsgSpfl] London’s financial markets. 

I I/ 1 Mag The Bank has also been brave 
n/^[ V enough to touch on some of the 

more sensitive issues— above all 
“. . . ana try not to say Its role as adviser to (rather 

anything that we might regret than equal to) tbe Treasury, 

in four years’ time” Former Chancellor Denis 

Healey la given to chance to 

say that, in his day at least, it 

was he and not the Bank who 
circa AD 180 (local standard made the key decisions on 


Meet with success 
in Europe 

at Les Meridien. 



* . and try not to say 
anything that we might regret 
in four years’ time” 


its market to American, manu- nin & its Uruguay Bound of 


after the Asterix, is trying to time),” and that it is being I policy. 


trsde-HhpralicHnv ‘ nPMtiaKnnc Fenech Adami has also raise funds to complete the placed with the local Insurance « r peter Middleton, the 

fuSScS' b^SwanToSorfr SumlthSSSt much* cS qrt«*ly abandoned on behalf restoration work,and evoitualJy rodustry, "in recognition ^ of Permanent I Secretary ro the 

oortediv honpq tn rot thitariffc deuce in the Test that real re- the state a defence to a to reconstruct the re main s of Asterix ^ representing • the Treasury, graciously concedes 

lifted before* nea^monthWcc^ suits are achieveable. At the HS^iESL SS?r by h * e , ship ffld put 11 011 pabUc S5S! “"to in- the rtew of Bank officials 

nmnic summit in venire formal launch of these neentis- Waud s Roman Catholic church display. surance loss (ami salvage). sometimes prevails over that of 


nomic summit in Venice. 


formal launch of these negotia- Rand’s Roman Catholic church display. 
ttoBS. all Gatt members in any J« er ^ £ r . e 7 ,0 “S° ,e ™ ne « 


tpe prermus government Lloyd’s chairman, Peter The Initial target is £25,000. Whitehall mandarins— with the 
118 d JP bbed SOme sit its Miller, who has a home on Sark But the slip make® clear that proviso of course that minis ters 
properties. and frequently flies to Guernsey there will be ** no signing down can overrule both camps. 

Now aides of Fenech A da mi in his private plane, has not in the event of oversubscrin- 
are saying they hope the Pope only signed up personally as a tion.” ““ 


Extreme solution case undertook not to erect new Jf d J^ bbed SOme o* its Mfller. who has a home on Sark 

extreme soumon trade barriers. Furthermore, the Properties. and frequently flies to Guernsey 

For the sake of a diplomatic US Administration has all along Now aides of Fenech A da mi in his private plane, has not 
solution to developments in the declared that trade in high tech- are saying they hope the Pope only signed up personally as a 

semiconductor business the nology products is one of the will include Malta in one of member of to Maritime Trust, 


sometimes prevails over that of 
Whitehall mandarins— with the 


semiconductor business the nology products is one of the will include Malta in one of 
Japanese seem to be proposing most important areas for the his future trips. One of the 
to add an important industrial General Agreement to consider. ■ new premier's first acts was to 


m “ U ' failure of th c US-Japan 

USSr*"™!? 1 ' semiconductor agreement has 
senger cars among them— been dealt with by means of re- 

yhora ™ rket ?- ha - Te . hwom. a- , aUatory tariffs. NowTis al^ 

creasmgly managed over the gestgd ^ toriffg be dealt ^ 


wm rocjuae «uuia in one oi memoer oi uie Wparlv iinri'. 

his future trips. One of to but has also given his blessing h™ E£?Z 

new premier’s £st acts was to to to fund-raising wheeze to G S^L^ * 

send the pontiff a birthday dreamed up by Ian Daish, « to tap them too. 

telegram. And the bishops on general manager of Transglobe — i — 1 » . 

Malta have had their previous Underwriting Management 

permit to visit prisons renewed. (Guernsey). StHr GUalitV 

President Beagan, who The Lloyd’s underwriting slip, ** * j 


Rogue lettuce 

A City of London analyst, ever 
alert, thinks he bas discovered 
indicators of a new grouping in 
the stores sector. 

In Harrods’ vegetables depart- 


Choose from Baris, Nice or Tours, Lisbon, Oporto or 
Londou.'Whether you are planning a Urge scale 
conference, incentives or confidential meetings, a 
Meridien hotel makes a better location. 

Better because our hotels are equipped with the latest 
technology; and the experience, to ensure you meet with 
success. Better still because Meridian can offer you 
something extra -that ^ecud style and ‘art do vivre which 
is uniquely French. 

Discover the soul of France at Lea Meridian - tmtefullv 
appointed rooms, magnificent Bench cuisine, and superb 
leisure facilities- ’With casinos, nightclubs, theatres and 

shopa dose by. 

Return the coupon today or phone 01-439 2744 
for the Facts Rick. 

Tb: Conference Sales Department, Meridien Hotels Ud. 
362 Regent Street, London VlR STB. 


There is no obvious justifies- wide market-sharing arrange- 
tion for adopting so extreme a ment. Each step seems to be 
solution as managing the micro- taking us further and further 
chip market: the problem has from a sensible solution. 


gestgd the tariffs be dealt with President Beagan, who The Lloyd’s underwriting slip, ^ HarrQds . vegetables depart- 

by means of some kind of world- viewed the old Maltese Labour which is to be offered to the The Bank of England has put ment be found a lettuce 

wide market-sharing arrange- government with distrust be- 150 or so Guernsey-based insur- to rest any i«np«»r ir. g suspicion, wrapped with a Teseo covering 

ment. Each step seems to be cause of its Libyan tics, is ance companies over the next tot it remains an archaic 

taking us further and further believed to have had a hand in few weeks, states that the policy organisation locked in the 18th /1Z. ' 

from a sensible solution. convincing to United Nations period is “unlimited from century. \JOSEJTVET 


THNa 


- — 2&» 

-MERIDIEN 

EUROPE 

TUrt!CaMNMQft0frtttHUI.*C* 


5 




financial Times Friday May 22 1987 


THE BEST result of die British 
general election would be a 
Conservative victory with an 
increased share of the popular 
vote, but a reduced majority in 
the House of Commons. 

Once the election" is. out of 
the way, the., best ..fbUawHnp 

would be for the : opposition 
pa if j pc to .come, -together— *nd. 
form a single grouping which, 
for the sake of simplicity, might 
just as well be called the Demo- 
crats. The new body could then 
be in a position effectively to 
challenge the Tories next time. 

There are two questions here. 
One is whether such a develop- 
ment is desirable. The ether is 
whether it is likely.. 

A third Tory "victory is desir- 
able because it would help to 
seal a fundamental change that 
has been taking place in British 
politics over the last decade 
or so. It is the move away from 
irresponsible public expendi- 
ture and excessive -trade union 
power and towards a new 
common ground shared by all 
. the main political parties. This 
is that Britain must be competi- 
tive, must pay its way and must 
■reverse its relative economic 
dedine. 

The country needs an assured 
parliament ary majority to have 
a chance of doing so. To throw 
oat the Tories now would be to. 
risk an interruption in a pro- 
cess of change that Js not yet 
complete. 

* Neither of the opposition 
' groupings are yet ready to 
govern. The Labour Party, for 
all the moderation shown in Its 
manifesto this week, has yet to 
demonstrate that it has put all 
its internal quarrels bebind.it. 
And if it were to win the elec- 
tion. it is most unlikely that it 
would do so with anything bat 
the barest of majorities. There 
.would be a period of great 
political uncertainly as the 
country waited for tha next 
election, probably in 1988. 
.'.The Alliance does not really 
even aspire to win the election 
outright If by any chance it 
-did, it la sot enough to say that 
it has pot forward, a set of 
•policies, with which it -would 
be perfectly easy .to live. Ail 
the old- problems about who 
jims. tile Alliance, and indeed 
what It la. would re-emerge.. 
With a few notable exceptions, 
it would' form an amateur 
government, composed of some 
very strange bed fellows. 

There are those - who say, 
especially in the Alliance, that 
tha best way forward is, there- 
fore, a hung or a balanced par- 
liament. Labour advocates of 
tactical voting seem to be say- 
ing much the same thing. Yet 
that amounts to believing that 
any outcome l* preferable to 
having Mrs Thatcher bade; 
which Is i pretty sweeping state-, 
meat. It is entirely, unpredict- 
able how a hung . parliament 
would work. That mighthavp its 
charm, but it .is -doubtful 
whether the British- economy 


Politics Today 

Why the 
Democratic 


ELECTION ’87 


have its day 


By Malcolm Rutherford 


is yet strong enough to bear 
the uncertainty. Again, another 
election would be almost bound 
to follow next.year. 

Now for. the Tories. The 
reason why it Is desirable that 
they should win an increased 
percentage share of the vote 
is that that would undermine 
the argument that they are a 
minority government The argu- 
ment has its force: they won 
around 42 per cent last time 
and a huge parliamentary 
majority. Yet if they were to 
go above 45 per cent next 
month, the case that the 
electoral system is manifestly 


unfair would begin to fall 
away. 

At the same time, however, 
it would be undesirable for 
the Tories to win yet more 
seats. That was ■ part of the 
trouble in 1983. The House of 
Commons became full of 
redundant Tory UPs. '■ There, 
were so many of them that 
there was "very little effective 
opposition. 

The process was demoralising 
not only for the Labour and 
Alliance parties, but also for 
those Tory HPs who had 
nothing much to do. It was 
bad for parliament because it 
ceased to be a contest. If it 
happens again, the under- 


employed members should be 
at least set a task, or perhaps 
they should set It for them- 
selves: drafting a package of 
constitutional -.reform, for 
instance, for the parliament 
institutions of, the 1990s. 

An outcome where the Tory 
share of the vote goes up and 
the Tory majority in the House 
of Commons .goes down is tech- 
nically quite feasible and may 
even come about It would 
mate for a better House of 
Commons. 

We come now to the most 
important part of the argu- 
ment: the .effect of such a 
Tory , victory on the opposition 
parties - and the next stages of 
political realignment If Mrs 
Thatcher does win again quite 
easily, it must become clear 
that the Tories have a prospect 
of . going on winning . in- 
definitely until there ls runited 
opposition. 

The best way forward, I 
suggest is not through proper- 
tional representation, but for 
some sort of broad merger of 
the anti -Conservative forces. 

For a start in the sort of 
parliament that we are envisag- 
ing after June U, proportional 
representation is exceedingly 
unlikely to be introduced. Most 
of the Tories would oppose it 
and, under -pressure from the 
Whips, some of those who 
hanker after it would probably 
toe the party line. The 
majority of the Labour Party 
would oppose it as well. So 
it is not on a likely political 
agenda. 

It is also unnecessary. For 
it has never been self-evident 
that two broad strands of 



ELECTION ’9I/S92 


Lombard 




political opinion -cannot be 
contained within what is 
essentially a two-party system. 

Big political parties are them- 
selves coalitions representing 
an extraordinarily wide range 
of views. That goes for the 
Democrats and the Republicans 
in 4be US and for the Conserva- 
tive and Labour parties in 
Britain. What has gone wrong 
In British politics is that the 
natural coalition of anti-con- 
servative forces has failed to 
materialise. 

The party manifestos pub- 
lished this week Illustrate the 
point. The most striking fea- 
ture Is the way that both Labour 
and the Alliance 'are trying to 
catch up with some of Mrs 
Thatcher's reforms: the right to 
buy a council house, for in- 
stance, has become part of the 
conventional wisdom, yet used 
to be anathema to Labour. But 
the other feature is that there 
is almost nothing in the 
-Alliance manif esto that Is not, 
or could not be, in either the 
Tory or the Labour equivalent. 
(Nuclear defence is perhaps 
the most notable exception, 
though even there Labour has 
trimmed its unilateralist policy 
of last autumn.) 

Now it is possible to argue 
that the Alliance therefore 
represents the middle course, 
combining the best of the 
Labour sodal conscience with 
the best of Mrs Thatcher’s free 
enterprise. Yet the facts re- 
main that the Labour Party 
does not go away and that the 
Tories go on winning. 

The conclusion that 1 draw 
from that is that both Labour 
and the Alliance will have to 


swallow their pride and form a 
broad democratic grouping. It 
could be called the Labour 
Alliance, the Democratic Alli- 
ance or. best of all, just the 
Democrats or the Democratic 
Parly. 

It w21 be exceedingly diffi- 
cult to do, not least because of 
the personalities involved and 
because each of the opposition 
parties has rts own constitu- 
tion. Yet it can be done. The 
alternative is to go mi losing. 

Mr Neil Klnnock already 
faces an agonising Labour Party 
Conference this autumn, unless 
he turns out to do spectacularly 



well an the tost few weeks of 
the election campaign. He will 
be attacked by the left for not 
being socialist enough and for 
producing a manifesto that 
bean only the faintest relation- 
ship to some past conference 
resolutions. Yet he will have 
very little choice but to fight 
back. Indeed it is largely in 
standing up to the far left that 
be has made his name as 
leader. This is a process that 
will have to continue unless 
Labour is to be reduced to a 
militant sideshow. 

There is one dement that 
should help him. After a third 
Labour defeat dn a row, the 
trade unions will almost cer- 


tainly further disengage them- 
selves from politics. That should 
make it easier for him to seek 
to change the constitution, drop 
the block vote and allow mem- 
bers to vote individually. 

The Alliance wLH also have 
its problems after the election. 
It is sometimes assumed now 
that it is almost a single party. 
It is not. After June 11 all the 
old questions about whether 
there should be a formal merger 
will resurface. That, too. would 
involve rewriting constitutions. 

Thus, if the Tories win the 
election easily, both Labour and 
the Alliance will be engaged 
in fundamentally reassessing 
their future. The question is 
whether anyone will have the 
courage and the vision to say: 
“Let us get together as the 
only way of replacing the Gov- 
ernment." It would mean that 
the Alliance would have to shed 
some of Its doseet Tory sup- 
porters and a section of the far 
left of the Labour Party would 
be almost bound to pern off — 
to become perhaps like the 
French Communist Party. But 
it may be the only means of 
establishing a broad-based 
opposition capable of winning 
next time. 

It is not as if there is nothing 
to attack in the Tory manifesto, 
or indeed in the whole Tory 
record. The absence of con- 
stitutional reform, the 
illiberatism on race, the threat 
of censorship of broadcasting, 
the growing strand of authori- 
tarianism and centralisation In 
the approach are all wide open 
to criticism. But so long as the 
opposition is divided, the 
attacks fall short of the mark. 


The same old 
health service 


By Joe Rogaly 


THE OPINION polls tell us 
that the National Health Ser- 
vice Is an Important election 
issue, but die politicians know 
that it is a simple auction. For 
the NHS is one of those peculi- 
arly British institutions that is 
untouchable by any democratic- 
ally-elected government. Not 
even the free-market stand-on- 
your -own-two feet Tories of 
today have felt able to come 
forward with a programme of 
fundamental reform. There is 
no talk in the Conservative 
manifesto of phasing oat the 
NHS and phasing in private 
medicine. There is not even a 
glimmer of a proposal to 
devolve management of the 
service to locally elected bodies 
(perish the thought); nor is 
[here any hint that a state-run 
insurance system, with bills paid 
by patients wbo then reclaim 
the money, might work better. 

That would be too radical. 
The Tories prefer to boast that 
they have spent more on the 
NHS, in real terms, than any 
previous government. They 
plan to go on spending: on re- 
ducing watting lists, for ex- 
ample, or. in the case of hospi- 
tals, on "the biggest building 
programme ever." Labour is 
Imprecise about money, but it, 
too, promises to reduce waiting 
lists. More than that, its NHS 
would be a "high quality ser- 
vice," untainted by private beds 
(although not absolutely im- 
mediately). The Alliance would 
step up the Tory budget every 
year until, by 1992, its expendi- 
ture would be £lbn ahead of 
what is currently planned. 

There Is no mystery to any 
of this. It is all explained in 
the best book yet written on 
Britain’s health service — Enoch 
Powell's A New Look at Medi- 
cine and Politics, which was 
first published in 1966. If you 
want to grasp the essentials of 
the matter you need read noth- 
ing else. For as Mr Powell 
pointed out ** medical care 
under the NHS is rendered 
free to the consumer at the 
point of consumption." The 
consequence is obvious: 
"supply has to be rationed by 
means other than price.” Hold 
those two basic precepts for a 
moment. There is a third, and 
it is even more devastating 
than the other two. Here it is: 
“There is virtually no limit 
to the amount of medical care 
an individual is capable of 


absorbing.” In short, demand 
is potentially infinite. It could 
be for a check-up, or a follow- 
up, or a heart-and-lung trans- 
plant There will always be 
new techniques, new treat- 
ments. and patients to insist 
upon having them. 

We have therefore so 
arranged matters that the 
amount of health care most 
people get is rationed by the 
Treasury. Perhaps that is one 
reason why the British are 
more or less as healthy as other 
Europeans, at a generally lower 

price in terms of the propor- 
tion of GNP spent, and at satis- 
factorily lower rates of pay for 
doctors and consultants. It is 
il50 a reason why no Govern- 
ment will ever get it right. 
"From the point of view of its 
recipients, Exchequer money is 
for all practical purposes 

unlimited," wrote Mr PowelL 

Mrs Thatcher’s Conservatives 
have, to their creGit, at least 
made a dent in that one: NHS 
administrators probably are 
managing their Treasury ration 
better nowadays. But to the 
Government’s discredit, ther 
have not spent quite enough, 
or quite wisely enough, to 
reduce the time spent on wait- 
ing lists for urgent cases to 
less than a month. There are 
still far too few surgeons. The 
diversion of money from 
London has gone too far too 
fast The cash allocated has 
not been sufficient to support 
the transition to community 
care for the elderly. The next 
government must put these 
matters right 

Even if it does, the headlines 
about the NHS being in a 
“ crisis ” will continue. This is 
inevitable, whichever party or 
parties is in charge. Back to 
Mr Powell: “ One of the most 
striking features of the 
National Health Service is the 
continual, deafening chorus ot 
complaint which rises day and 
night from every part of It, a 
chorus only interrupted when 
someone suggests that a dif- 
ferent system altogether might 
be preferable. . . ." Its prac- 
titioners are obliged to knock 
it, all the time, in order to get 
more money spent on 1L It is 
a fine old election issue, in 
which the reality behind the 
auction will be masked by loud 
protestations about compassion 
on the one side, and efficiency 
on the other. 


From the President; 

Royal Institute of 
Brtriifc Architects. - 

Sir,— In bis article (May 7) 
entitled "Schools and their cus- 
tomers" Michael Dixon dis- 
misses the warning ot a senior 
educational official at the Asso- 
atlon of County Councils whom 
lie quotes ns saying "Parents 
might choose a school where the 
buddings are about to faUdown. 
Authorities might have to keep 
that open and close a school 
where the buildings have fifty 
years of useful life;" He con- 
siders this a somewhat exag- 
gerated foreboding. 

Reports, however, reaching 
this institute suggest that con- 
cern about the condition of our 
educational building stock is 
well founded. Building failure 
caused by neglect of ' routine 
maintenance is already disrupt- 
ing classes in many educational 
authorities and this will lead to 
a restriction of parental choice 
if centres of academic excel- 
lence continue to be housed in 
dilapidated buildings which will 
soon need to be replaced or ex- 
tensively refurbished. 

The latest report published by 
Her Majesty's Inspectors on the 
effects of local authority ex- 
penditure policies <m education 
draws attaatiou to the conse- 
quence* of a continued 
deterioration In the fabric of 
building* and points to asigoF 
Scant : relation between the 
quality -of: produced by 
pupUs antitfa appropriateness 

It states that hi nine-tenths of 
the lwaowr seen by inspectors 
the accomtodation had an in- 
fiuenca oh.' the quality of the 
pupils’ wqrii The RIBA has 
fought to alert decision-makers 
in local aixf central government 
to the social «b& economic 
rriue of their property saris 
*hich are now being maced at 
risk through neglect of planned 
®*lntenauce. 

Disruption to classes and the 
closure of some schools through 
Wwnatur* building failure can 
^ avoided if an appropriate 
»>re of resources is devoted to 


future and if a sustained effort 
£ made to cleat the enormota 
.backlog of maintenance which 
has accrued through mis- 
guided application of financial 
controls. 


Letters to the Editor 



to Southport in Lancashire he 
will be able to count 22 golf 
courses — the distance is 48 
miles. 

V. Kirby- . 

Lowther Lodge, Church Road, 
Lytham, Lancs. 


EC code on 
S Africa 

From Hr L. Fulton 

Sir,— Mr Mitchell (May 11) 
accuses the Labour Research 
Department of giving a "very 
misleading picture" in our 
report on the returns of British 
companies under the EC. code 
of conduct for employment 
practices in South Africa. 

In fact it is Mr Mitchell and 
the Department of Trade and 
Industry which he quotes who 
are misleading. They state that 
“more than 96 per cent of black 
employees are paid above the 
recommended level." This is 
based on the DTI finding only 
3.100 employees are paid below 
the minimum recommended by 
the EC. It does not follow that 
all the remaining employees are 
paid .above this rate. Some 
companies such as Lonriao and 
Court* olds de clin e to disclose 
whit they pay to over 12,000 
employees outside the urban 
areas. Other companies omit 
details on pay to female em- 
ployees, One company, Prit- 
chard Services Group (now part 
of the Hawley Group), refused 
to submit a report at all, follow- 
tog its 1985 disclosure that it 


L. A. L. Holland, 

66 Portland Pleat, W-I. 

Playing 
around 
From Mr V. Kirby 
Sir,— In Four survey of 
Anda&ciff . (M*y . 25) XUVSfi 
, White asks the . question, 
p" Where else ha* 14 golf 
(courses in *X> miles ft* there 
are on the road going west 
from Malign?" If he cares to 
uk« the roAd from Fleetwood 


paid 1,860 employees below the 
EC minimum rate. Moreover, 
the DTI report is based on the 
returns of only 126 companies 
when there are known to be 
over 270 . British companto 
operating tn South Africa. Mr 
wntrhwn goes on to assert that 
“more than 90 per cent of com- 
panies, however, allow all their 
South .'Africa? employees to be 
represented by an ozganintion 
of their choice." This figure 
includes BTR Dunlop which 
offered 1*000 employees . the 
“cholM* of being lacked in 
1985 in a dispute over -union 
recognition- "Choice** Is rather 
limited trader ae on tinging state 
of emergency, in which an esti- 
mated 20,000 people have been 
detained, many iff them trade 
union members; . . . 

Our report concentrated on 
-tile Jew facts presented by the 
companies and found that at 
least S£0O employees are paid 
tezav tin SC mlfdauiM, and 
that only 30 companies recog- 
nised unions at the local IeveL 
Tha declared aim of the code 
of conduct Is "to make a con- 
tribution towards abolishing 
apartheid.** Mr Mitchell seems 


to have missed the point of the 
code. 

Lionel Fulton, 

Labour Research Department, 
78 Blackfriora Ed, SEL 

Assessing rides 
in travel 

From Mr D. Sowers 

Sir.— Dr Landy (May 14) and 
Mr Farley (May 18) seem to 
believe that travellers perceive 
no difference between the risk 
involved in making a long 
journey or a short journey. The 
relative danger of different 
forms of transport should, they 
suggest; therefore be measured 
by deaths per passenger-jour- 
ney, not deaths per passenger- 
stile. 

The average Journey on 
British Rail is 27 miles: on 
British airlines it is 1,220 miles. 
When comparing the accident 
rate on railways and airlines, 
your correspondents are there- 
fore inviting us to believe that 
travellers consider that a jour- 
ney from London to M aiden- 
head involves the same risks as 
a journey from London to 
Catania, presumably whether 
the Journey to Catania is made 
by.aeroplane or by train.' 

Such an attitude Js irrational 
because the longer the journey, 
the longer the exposure to 
potential hazards, whether they 
be carts on level crossings or 
other aeroplanes In the sky* 
Danger is not limited to getting 
tn and out of a train or the 
takeoff and landing of an aero- 
plane. Travellers indeed seem 
to feel more apprehension about 
a long journey than a Short 
journey, and to worry more 
about a trip to Catania than a 
-trip to Maidenhead, or down to 
the local shops. 

Travellers want to know hoar 
likely they are to reach their 
destination safely, as your cor- 
respondents suggest: but they 
want this question answered for 
a journey they ere planning to 
make, and for the alternative 
methods of making this trip. It 
is little help to the traveller 
planning to visit Catania to 
know that the chance of reach- 
ing Maidenhead by train Is 
greater than the chance of 
reaching Catania by aeroplane; 
he will want to know how the 
chance of reaching Catania by 
train compares with the chance 
of reaching Catania by aero- 
plane. 

Comparisons of the dangers 
of different modes of travel 
based solely on accidents per 
journey would therefore be 
unhelpful as well as illogical. 
The length of the journey 
infl uences the risk, and must 


. *-.»•= :r-.i T.- : ' ~ ■- -»r *r - . 

therefore be a factor in any use- 
ful comparisons. 

David Sawers. 

10, Seaviev Avenue, 
Angmermg-on-Sea, 
IAttlehampton, Sussex. 

In the fast 
lane 

From Mr D. Bodecott 
Sir,— Mr B. Craven (May 19) 
has not laid this issue to rest 
and misses the point regarding 
how travellers assess risk at 
the end of a runway or cruising 
in the fast lane. In the academic 
sense, he may be technically 
and statistically correct in his 
analysis. Theory and practice, 
however, are not the same. 

As someone who has driven, 
trained and planed many 
thousands of mQes in my work- 
ing life. Dr Landy's concept of 
risk calculation per passenger- 
journey does is practise repre- 
sent the true perceived danger 
to the frequent traveller. 

“Risk per travelled hour" 
may have some limited validity, 
but “ risk per passenger mile " 
is an impractical concept which 
also ignores the vagaries of 
human perception. 

David Bodecott. 
newton House, 

Uotherby, 

Penrith, Cumbria 

Consulting 
actuaries 

From Mr A. Jenkins on. 

Sir.— Mr Thornton’s letter 
(May 16) was sad in the light 
of - the guidance on professional 
conduct issued by the Institute 
.of Actuaries in 1984. That guid- 
ance placed responsibility for 
actuarial advice on the indivi- 
dual actuary and made no differ- 
entiation between actuaries in 
public practice according to 
their particular mode of employ- 
ment. It recognised the reality 
that; for those providing an 
advisory service based on per* 
zonal expertise, the professional 
and business interests are com- 
mon. In particular, it should be 
pointed out that that guidance 
attached the word “indepen- 
dent" not to an actuary (as Mr 
Thornton does) but to the ad- 
vice. Independence is not the 
prerogative of the actuary in 
partnership, nor would his ad- 
vice necessarily be independent. 

The lingering desire to main- 
tain divisions within the body 
of actuaries in public practice 
is one-sided and is virtually 
unique to this country. It is 
ironic, for example, that I can 
be a member of the Inter- 
: national Association of Consult- 
ing Actuaries but not of the 
Association of Consulting Actu- 
aries here. It is hard to see the 
desire to perpetuate division as 
other tb*n commercially moti- 
vated. Having practised on both 


employed actuary has to be just 
that bit more careful over con- 
flicts of interest, but I do won- 
der at the motivation behind Mr 
Thornton's letter. 

A. A. Jenkinsoa, 

Cvbie, Wood and Co* 

VO Box 144, Norfolk House, 
Wellesley Road, Croydon. 


DISCOVER WHAT SETS 
A DUNHILL CIGAR APART 


For over 70 years Alfred D uphill has been dedicated 
to a goal ... to locate, preserve and offer its customers the 
finest cigars in the world. 

The selection process is of paramount importance. 

We start by ensuring the wrapper leaf is as perfect as 
nature can make it. Smooth, firm and without blemishes. 
Experienced hands then skilfully and painstakingly roll the 
agars. Each one will be a unique example of this special craft. 

But even then, only those that are judged to be truly 
excellent will be selected and considered worthy to carry 
our name. 

Once selected the care continues in the unique 
Humidor Room at Alfred D unhill in St. James’s. Here, in 
carefully controlled conditions, we ensure the cigars remain 
at the peak of perfection. 

To enable you to fully appreciate what sets our cigars 
apart, we would like you to sample one of our distinguished 
D unhill Havana, cigars - with our compliments. 

We invite you therefore to visit the Humidor Room 
at Alfred DunhiD, 30 Duke Street, Sr. James’s to receive your 
cigar and to see our impressive selection. A range which 
also indudes the finest Partagas, Monte Cristo and Romeo 
y Julieta ... to name just a few. 

To receive your complimentary cigar, call in to 
see ns on the First Floor during normal shopping hours 
Monday to Saturday. Alternatively, for more information, 
about our complete range please telephone us on (0392) 
410440 or return the coupon today. 


Return to the Humidor Room, Alfred Dtmhill, Freepost; 1 
30 Duke Street, St. James’s, London SW1Y 6DL. 

I am unable to visit the Humidor but would like further 
information, including the price list and 
mail order catalogue for the superb cigars offered by 
Alfred D unhill. 

Name^ 

Address 



, Postcode. 


current agar is. 




Offer limited to one cigar per person. 
Gosing date 30th June 1987 or while stocks last. 


I 



THE POPULAR 
VOTE 


FINANCIAL TIMES 


Impeccable timing. 


CONSTRUCTION EQUIPMENT 


Friday May 22 1987 


Government growth projections proved optimistic, reports David Honsego Africa 

French economic dream fades ‘ poised 


FRANCE was being haifa d only 15 
years ago as the rising industrial 
power of Europe, but suddenly it 
faces the prospect of being the poor 
man of the CnnBncpt 

The French Senate's economic 
committee warned this week that 
France's gross national product 
could soon slip behind of Italy 
and Bri tain 

A front page article in the daily 
Le Monde earlier this month carri- 
ed the headline "die haunting echo 
of decline." Even Mr Christian 
Saint-Etienne, a normally sober an- 
alyst of France’s economic prob- 
lems, headlined a recent article: 
"can France's wmw/wnig decline be 
halted?" 

This creeping pessimism seemed 
to be endorsed last week by gloomy 
government forecasts of loner eco- 
nomic growth thu year nT1f i higher 
inflation. 

The French Government did little 
to prepare public opinion lor the 
bad news, prompting a four percen- 
tage point tumble on the bourse on 
Friday. The market stQl remains 
edgy. 

Nonetheless these less favou- 
rable projections are in line with 
what private forecasting institutes 
in France have been saying among 
themselves for weeks - reflecting 
largely the downturn in the interna- 
tional environment as well as some 
weakening in domestic demand. 

But they are in sharp contrast to 
the Government’s hopes on taking 
power in March last year of higher 
growth (a ZB per rise in real gross 
domestic product in 1987) and 
strongly rising investment because 
of tire fall in oil prices and the dol- 
lar. 

The picture now emerging is that 
French GDP will rise at little more 
thaw 1 per cent this year, inflatiivn 
will be up to 15 per cent from 2.1 
per cent in 1986. Industrial invest- 
ment is flattening out, unemploy- 
ment will rise to 18 or 11.7 per cent 
of the workforce, and the trade ac- 
count is slipping back into deficit 
with a continuing reduction of 
France’s traditional surplus on in- 
dustrial goods. 

AQ this is bad news for a govern- 



ment which had hoped to go into 
next May’s presidential elections 
with an w panHing economy under 
its belt Mr Edouard Balladur, the 
Minister of the Economy, is no long- 
er counting on this — althnngh both 
inflation and exports should be bet- 
ter in the second half -and believes 
instead that the Government must 
rest its case on demonstrating that 
its policies are on the right path and 
will yield results eventually. 

Hence the flurry of posters put up 
by Mr Jacques Chirac’s neo-Gaufiist 
party focussing on 1992 as a way of 
linking tile opening of Europe’s in- 
ternal market with a revival in 
French fortunes. Or will the pessi- 
mists be proved right, with the 
country further in decline by then? 

In contrast to the recent bad eco- 
nomic figures there are more posi- 
tive that a tumround is under- 
way in the French economy al- 
though it is slower and more pain- 
ful than expected. The French car 
industry, which only four years ago 
seemed to be sinking nnrW the 
weight of losses by Peugeot and Re- 
nault, has regained market share in 
the past two years on both Europe 
and domestically. This is the fruit of 
both a costiy restructuring plan and 
renewal of its model range. 

French companies are generally 
in a stronger financial situation 
than a decade ago after three years 
of risin g profits and a reduction in 


their - albeit still heavy — indebted- 
ness. They have strengthened their 
capital resources through equity 

fiitwiing in thp financial markets — a 

record of FFr llbn ($lJ6bn) was 
raised in the first four months of 
foie year. Most striking have been 
the large nnmh«w» of tn odium sized 
companies — more than 170 in the 
past four years - which have ob- 
tained listing on tiie second market 

An advantage that France has 
over its European competitors is 
that because of continuing wage 
restraint, unit costs in industry are 
still rising more slowly than else- 
where in Europe. This is essentially 
why, even with an inflation rate ac- 
celerating to 3.5 per cent this year, 
France's inflation gap with West 
Germany should narrow to 2 per 
cent at the end of this year from 3J> 
per cent in 1988. 

However, there are other sectors 
of the economy that are for from be* 
ing out in the woods. The aerospace 
awl armaments industries — once 
one of the strong points of the 
French economy - are in trouble be- 
cause of falling orders, particularly 
on militar y sales to developing 
countries. Export orders recorded 
by the French aerospace industry 
fell last year by 40 per cent to FFr 
37bn at a time when Britain was re- 
gaining market share. 

Plant manufacturers — md honra 
turnkey export contacts - have 


been badly hit by the d ownturn in 
Opec and developing country mar- 
kets and by stronger competition 
from the US and Japan. In areas 
such as machine consum- 

er electronics, French products 
have been from the market. 

Indus trial investment which 
picked up strongly in 1984 and 1985 
has flattened out again - notwith- 
standing the i m pro v e m ent in com- 
panies’ finaimial situation. 

At a time of high real interest 
r ate s , co mpani es are gjvfog priority 
to reducing their <wHnMwi9n»<« or to 
boosting riimiigh financial 

assets. 

In months before the election, 

the Government has little leeway to 
pot through policy changes in** I 
might improve the outlook. Mr Ray- 1 
znond Barre, the former Prime Min- 
ister, who presided over the last in- 
vestment boom in the economy, has 
been, calling for incentives — 
accelerated depreciat io n or addi- 
tional tax cuts - to stimulate invest- 
ment through ftir Mn^iiipniTig com- 
panies’ habinna sheets. But Mr Bab 
ladur for so long ruled this out— 
beyond corporate tax cuts already 
in the pipeline - that he would lose 
credibility if be gave way now. 

There is littie room to bring down 
interest rates - without endanger- 
ing the franc - real foert-term rates 
are around 5 per cent, or as high as 
when the Government took power. 
The franc is increasingly consid- 
ered overvalued by bang tied to a 
D-Mark that is being pulled up part- 
ly by the dollar’s weakness. 

Because the Government did not 
fatko action earlier to limit the defi- 
cit in the social security fond, it is 
condemned in the coining weeks to 
a deflationary 1 per cent increase 
«nri»l contribution at a time when 
its economy is already stewing 
down. 

Mr Chirac could be t empte d to try 

to offset this by allowing salaries to 

rise more quickly in advance of foe 
election. The danger is that this 
could widen the trade deficit - al- 


ready likely to increase this year to i 
FFr 15bn - through sucking in im- ' 


Qatar launches $lbn offshore gas project 


BYANDREW GOWERS, MIDDLE EAST EDITOR, IN LONDON 


THE GULF state of Qatar has 
launched its long-awaited Slbn off- 
shore gas development by appoin- 
ting Bechtel of the US and Technip 
of France as engineering, construc- 
tion and procurement consultants. 

The formal go-ahead came on 
Wednesday night, when Sheikh Ab- 
dul- Aziz bin Khalifa al-Tbaui, the 
Qatari Minister of Finance and Pe- 
troleum signed a consultancy con- 
tract, estimated to be worth be- 
tween S70m and S8Qm, with repre- 
sentatives of a joint venture formed 
by the two companies. 

The project - in Qatar’s North 
Field, believed to be the world's 
richest single concentration of natu- 


ral gas not associated with oil - will 
probably be the biggest started any- 
where in the Gulf this year. 

The deposit, lying o ff Qatar’s 
north-east coast and containing at 
least 150JXH)bn cubic feet of gas, 
was discovered nearly 17 years ago 
by Shell International But foe 
Qatari Government has long proc- 
rastinated over a decision on the 
terms and financing for its develop- 
ment, despite long negotiations 
with a variety of international oil 
and engineering companies. Qatar 
sees the scheme as crucial to the di- 
versification of its economy, which 
is at present totally dependent on 
oiL 


The project, launched this week, 
is for the first phase of the North 
Fiekfs development, with planned 
capacity of 800m cubic ft per day, 
according to Shaikh Abdul- Aziz. En- 
gineering studies are to start imme- 
diately with a view to bringing 
phase one on stream within 314 
years. The total cost of the engi- 
neering and construction work, in- 
cluding offshore platforms, separa- 
tion plants and underwater pipe- 
fine, will be between $800m and 
S900m. with foe Qatar General Pe- 
troleum Corporation spending a 
further 5100m or so on drilling. 

On completion, the project is ex- 
pected to yield some 700m cubic 


feet of gas for local industry, power 
and water desalination plants, «nH 
a further 45,000 barrels a day of gas 
Sq uids and condensates for export 
This is equivalent to about 16 per 
cent of Qatar's current Opec erode 
oil production quota, and at current 
prices would generate export earn- 
ings of about 5200m a year. Qatar 
already exports liquid petroleum 
gas under contract, principally to 
Japan but also to Western Europe. 


financing of the project is not yet 
finalised, but Qatar is expected to 
seek to barrow on international 
markets as well as asking contrac- 
tors to arrange supplier credit. 


chase drops Japanese banks may 


note issue 


Continued from Page 1 


seek tax breaks 


Backing for 
double zero 


Continued from Page 1 


The reserve strengthening would 
be "better for borrowers, tenders 
and the international system as a 
whole" and would put Citicorp in a 
"position to help formulate and 
press for creative financing pack- 
ages for debtor nations pursuing 
market-oriented reforms." 

Mr Manuel Johnson, vice chair- 
man of foe Federal Reserve Board, 
was notably less sanguine in testi- 
mony delivered to Congress yester- 
day morning, possibly suggesting 
some differences of opinion be- 
tween the two institutions. 

He said, however, that "the 
events of recent days underscore 
the prudence and wisdom of efforts 
over foe last several years to 
strengthen foe capital bases of our 
larger institutions.” 

Mr William Seiman, chairman of 
the Federal Deposit Insurance Cor- 
poration, told foe same Congres- 
sional hearing that it would be 
"irresistible" for many banks to fol- 
low Citicorp's lead 


BY IAN RODGER IN TOKYO 


JAPAN'S banks are likely to renew 
their campaign for larger tax con- 
cessions on bad loan write-offs in 
the wake of Citicorp's decision on 
Wednesday to add S3bn to its loan 
reserves because of difficulties with 
loans to developing countries. 

Japanese banks are second only 
to US banks in tending to develo- 
ping countries and, like US banks, 
have taken a hard line up to now an 
concessions to troubled borrowers, 
such as Brazil and Mexico. Accor- 
ding to foe Japanese Ministry of Fi- 
nance, the total amount of de- 
veloped country (LDC) loons held 
by Japanese banks is about SSQba. 

An official at Sumitomo Bank, 
which has one of the largest LDC 
loan portfolios, said yesterday the 
Ministry of Finance should expand 
the ceiling on reserves for bad 
debts, now 5 per cent of total loans, 
of which 1 per cent is tax deducti- 
ble. Officials st Bank of Tokyo and 
Mi tsubishi Bank, which are »i” 


major tenders to LDCs, also welco- 
med the Gticorp move 

The banks lobbied the Ministry 
intensively last summer for h i gh e r 
bsd debt ceilings while negotiations 
were uniter way to restructure Me- 
xico’s borrowings, but to no avail 
However, foe Ministry later allo- 
wed the banks to sell their resche- 
duled Mexico loans to a jointly est- 
ablished holding company in toe 
Cayman Islands at a d i sco un t and 
authorised them to offset foe loss 
against tax. 

Tokyo’ markets shrugged 
off the shock cf the Citicorp move. 
The dollar dosed up YDJ53 at 
Y140.03 in Tokyo and the Tokyo 
stock market rallied strongly. 

He said the move was designed in 
part to demonstrate that banks 
would not so readily accommodate 
debt re struct uring and new lo an re- 
quests from borrowers, and were 
ready for a long fight 


Although foe French are hostile to 
this notion, they do not take the 
Chancellors remarks os yet indicat- 
ing a final position. 

TV French that, for 

them, foe most important objective 
Is a European accord an removing 
longer range weapons (1,000 to 
5,000 km range). 

Quentin Peel adds from Brussels: 
the US will reach a decision on foe 
double zero option even if its Euro- 
pean allies fail to agree on a com- 
mon response, a senior US diplomat 
said yesterday. 

The warning was given in the 
Hght of tfw continuing dhdstens, 
particularly in West Germany, over 
the wisdom of accepting the remo- 
val of all INF weapons from Eu- 
rope, as proposed by Mr Mikhail 
Gorbachev, foe Soviet leader. The 
same official stressed, however, 
that Washington had yet to roach 
any decision itself on the issue, and 
that no deadline had been given to 
the Nato alhes to achieve a consen- 


Worlci ^Weather • ' 


Helicopter costs soar 


*w* 

F 

•6 

18 

•F 

84 

Mmol 

8 

•c 

13 

"F 

55 


S 

25 

77 

Efcta* 

c 

13 

55 

HmTO 

C 

10 

50 < 

Fms 

s 

23 

73 

Mn 

s 

74 

75 

Hu PM 

s 

17 

83 

Mo. 

s 

35 

85 

Fartfafl 

a 

9 

48 

BrohQ 

- 

a/a 

a/a 

FrU 

c 

18 

68 


r 

17 

63 

Scam 

c 

11 

52 

Band 

i/a 

t/t 

a/a 

Untar 

s 

21 

78 

Mm 

1 

13 

55 

Stagow 

c 

14 

57 

Btata 

a 

9 

48 

U*r| 

s 

13 

55 

Bata 

e 

10 

50 

MM 

8 

15 

58 

Bmtt 

s 

IS 

59 

K.Is* 

c 

28 

5* 

Mv 

s 

38 

97 

tautata 

F 

18 

58 

Mm 

s 

» 

59 

taamiii 

c 

13 

55 

tank 

c 

9 

48 

1 IHinSV 

c 

33 

SI 

Mvm 

8 

9 

48 

bmM 

s 

78 

82 

Sim 

nfa 

*/i 

B/I 

Jrtm 

c 

33 

81 

»• 

s 

38 

97 

J "I 

s 

IB 

81 

tab* 

s 

23 

73 

Jitai 

8 

28 

88 

Unm 

a/a 

a/a 

B/I 

In 

E 

22 

72 

Cwfan 

F 

22 

72 

IMn 

s 

28 

78 

Ofcan 

B/I 

B/t 

Vi 

Date 

c 

11 

52 


c 

9 

48 

Intatta 

c 

14 

57 

fun 

7 

7 

45 

loantaai 

F 

a 

48 

Cofa 

S 

21 

78 

State i 

5 

22 

73 

W. 

B/l 

a/a 

■/■ 


S 

23 

73 

EMM 

C 

17 

83 

••■tai 

8 

21 

70 


I «c "f 

S 2D SB 

r » ■ S 13 56 

IM S 38 87 

•Mm C 13 55 

HMal* 8 28 79 

Man C B 77 

KM S a 88 

tem C 21 70 i 

tom F 25 77 I 

•fan* 8 8 43 

■K*b*I q/» a/i e/i 

ttste S 18 88 

Bm S 28 8* 

torOAi S 39 102 

MrTM C 13 55 

*» S 18 88 

fca* S 17 63 

ten S B 71 

Mb SIM 


S 1 M 

a io a 

f a h 

F 9 40 

C 7 45 


•C "F 
F 27 81 
a/a aft tft 
8 IB 64 
8 8 48 

CBS 17 83 
S 28 82 
T 29 M 
S 13 56 
8 7 4ft 

B 17 82 

a a w 

S 26 77 
S 27 81 
e 23 73 
8 27 81 

C 15 59 

F 22 72 

f 23 73 

S H 57 

8 8 48 

C 14 57 

aft a/a ait 

8 5 41 


Continued from Page 1 


C-Obu* D-Drato F-Fm Fg-Fos H-HaR B-Bn 
S-S<MS1-SisKS»-S<>MT-ninK 


through for Rafael into the Euro- 
pean market and would also add a 
new dimension to arms purchases 
between West Germany and Israel 

The scale of the PAH-2 cost over- 
runs is underlined by Defence Min- 
istry figures given to foe Bundes- 
tag’s defence committee this week. 

The German share of PAH-2 de- 
velopment costs is now put at DM 
2-lbn, against than DM lbn 
three years ago. It is also consider- 
ably more than figures of around 
DM l-5bn circulating only a few 
months ago. 

procurement costs for the 212 
helicopters to be acquired by the 
German army are now put at DM 
6 .lbn, against an original figure of 
1«nm than DM 3bn. 


France wiH be puttin g up the 
same amount in development costs, 
but faces a lower procurement bill 
as it Looks likely to buy fewer heli- 
copters. 

Additionally, the Bww De fence 
Ministry win have to spend extra 
for the socalled "interim solutions." 
The upgrading with night-fighting 
capability of the PAH-ls is forecast 
to cost about DM 700m. while the 
purchase of US Apaches would cost 
DM Llbn. 

The increase in PAH-2 costs is ex- 
plained partly by the decision to use 
a new European night-sighting sys- 
tem, still to be developed, together 
with a European motor. West Ger- 
many origin ally favoured US solu- 
tions in both areas. 


‘poised 
to enter 
critical 
transition 9 


By Anthony Robinson 
in JohannMbtsg 


In effect this is a description of 

the government’s bic a mera l 
parifamrtrt, its homelands poficy. 
and hs declared atm of enticing 
moderate Macks into the so- 
called national statuto r y cornual 
and foe regional sendee councils 
at local leveL 

For Mr Sunter this would turn 
South Africa "into a nafitary for- 
tress isolated from foe rest of the 
world, it can then descend into 
regional conflict and e v entu ally 
end up in a state called the 
wasteland.” 

Can Smith Africa avoid catas- 
trophe and emerge as a “wimting 
nation?” The answer Is only if it 
rejects apartheid and the tired 
old *tens”; embaiks om mass ed- 
ucation and bwAig pro- 
grammes and builds on its eco- 
nomic advantages. 

Despite its mineral wealth. 
South Africa Is not a rich coun- 
try, ti» book points out. Per capi- 
ta gross domestic prod u c t of 
around SL960 is relatively fane, 
furthermore, "high threat- 




information and Mo-based tech- 
nology Is low an metals use aid 
high on brain power. 

Given the right political cli- 
mate created by open-ended ne- 
gotiations, South Africa could 
malm fofl nseof its exeeflent in- 
frastructure and develop both Its 
industry and soak up irnemptey- 

QKStfi 

As for the form of the negotia- 
tions, the book suggests foe 
procedures laid down at east- 
west summit meetings and the 
strategic anna 1 flotation talks, 
(SALT). 

“Informal medi a tion at local 
regional and national level... 
toUewed by a SALT-type process 
whereby profcorfonal negotiators 
are duoi by foe parties con- 
cerned to attend a national for- 
mn ... the last stage is where the 
leaders get round the table to 
finalise me settlement. 1 * 




Baume & Mercier 

GENEVE 1830 

Hi«xfcaftedS»*a\*«8dwsat38CQnckAa^ton*n'W 


THE LEX COLUMN 


Fashionable, in 
any currency 


SOUTH AFRICA stands at the 
porting of the ways. Like Chris- 
tian In John Banyan's Pilgrim’s 
Progress, South Africans must 

pWbw h »(a rm An iHSimft high 

road ol survival throu gh negotia- 
tion or the low road of coercion 
and domination. 

While the Erst offers sustained 
growth, reconciliation with the 
outside world and the release of 
a sati re energy, the second 
tends, after an initial aanrtioiiw- 

Imnmte, to a 

siege economy and die fortress 


The day before yesterday it was 
the general belief that UK banks 
were better -reserved a gainad bad 
loans than their US compe tit o r s. 
That has not changed. But UK bask 
shares were still faffing yesterday, 
fa s ter than the rest of foe London 
market, while "Wall St, h»r>Y stocks 
i nc l u d ed , was firmer. Must be (hose 

opinion polls. . .. .. 


[ Share Price rotative to 

Jaipur Share Moo ki 


around 10, which hardly suggests 
en th usiasm has got out of 
ha nd, or that recurring rumours of 
a sell-out by the controlling Quandt 
family are required to support foe 
prioe. After aJL with net cash of 
about £500m, BMW is hardly despe- 
rate for new capital 


CE.Heath 


These are the stark options put 
toward in a booklet entitled The 
World and Sooth Africa in foe 
1990s. It is l»sed on a study of fe- 
ture global trends tbdf In- 

teraction on South Africa. The 
book was commissioned by Ang- 
loAmmcao, South Africa’s most 
powezful mining, industrial and 
QqbdqbI group. K was written by 
Mr Own Sunter, an En gi i Am n 
who reports to Mr Garin Refly, 
iStiglrt American’s r*fa» farw n f «m 

“scenario planning. " 

Its flpb grm y 

routing in the wake of a whites- 
only election In which more than 
59 per cent of v o te r s supported 
die neo-apartheid, coerefon- 
cmxt-reform poBctes of the Na- 
tional Party and 30 per cent opt- 
ed for pai ^Hnw of the 
and a wfaftes-oniy state as pre- 
mised by Dr Hendrick Yer w oerd 
hi foe 1960s. 

A m ajorit y of white vo te r s, in- 
^ prfirg thousands of 
speaking defectors from TberaT* 
ranks, thus endorsed the Gov- 
ernment's poficy. Bat will it 
work? According to Mr ftmteefa 
analysis, the answer is “no." 

“Anyone co-opted will imme- 
diately lose craffbffity with bis 
own side and for that reassn 
would. be ruled out of the nego- 
tiation process,” he writes In a 
passage which echoes foe judg- 
ment of moderate black leaders 
such as Qiief Bntoelesi, 

leader of more than 5 arfSton Zu- 
lus. 

The hnpBcaflons of an 81 per 
cent white vote for an Imposed 
solution or for negotiations cm an 
unrealistic basis are therefore 
serious. According to Mr Santo, 
“the negotiation option is full of 
risk, but it is the on|y one which 
leads ultimately to gamine pros- 
perity foraH” 

The soft-looking al ter n ati ve, 
he writes, is co-option. “With co- 
option, yon bring people who 
drink tike you Into the system. 

distribute saumeftoweahh to 
t h em . Eai|y on it looks fine on 
the surface with the top team 
taking on an increasingly multi- 
radaf complexion. But it is in- 
creasingly flawed because the so- 
dai harmony r e q u ired to con- 
sistent growth will not exist mt- 


C .RHea th could scarcely believe 
its Luck. Having demolished earn- 
ings pm- share, undershot a pessi- 
mistic profit forecast by more than 
£Sm and slipped in an excep tio nal 
loss of double the size expect e d, the 
share price rose 6 per cent in a fall- 
ing marital 

Relief that the dividend was not 
cut played a part, bat i nvestors 
seem remarkably ready to accept 
the Ffelding-Henth view that all foe 
gremlins have now been accounted 
for and tilings bbi only get better. 

The difficulty is that given foe 
unpredictability of US c ourts the 
exceptional item of £lL2m may not 
leave foe slate quite as dean as sup- 
posed. And, altimng h foe Fielding 
management is held in deservedly 
high esteem, it will be a hard riog to 
re-establish the broking 

business following the recent ex- 
oduses, especially with rates soft- 
ening, sterling rising and. interest 
rates faffing 

It is true that currency losses ac- 
counted to part of foe underwrit- 
ing and broking lasses, but the pic- 
ture would have been even more 
dismal if only 12 months ci Fielding 
profits had been included. 

And, while Hawth shareholders 
may eventually have reason to be 
thankful to foe arrival of F ielding 
they are currently ™wAng a £25m 
reduction in fandt (fo 

part thanks to the goodwill write- 
off) ami a severe dilution in earn- 
ings. 

The oorapaoy is rightly making a 
virtue oat of a forced reduction in 
underwriting (and win probably be 
out of the business altogeth er in 
five years), but a near halving in 
Pinnacle earnings for the current 
year leaves another bole to be 
plugged. 

Given the bngerterm doubts 
about the viability of a medium- 
sized generalist broker, an dove 


1986 W87 


average rating seems perverse 
unless it Is buoyed by premature 
takeover froth. 


BMW 


With Daimler-Benz getting-on foe 
wrong side of foe German taxi dri- 
ver, and VW leaving its currency 
hedging in light hands; it is no won- 
der that BMW has become the fa- 
vourite motor stock on foe German 
equity market So yesterday’s an- 
nouncement of some striking gains 
in turnover by BMW helped to add 
DM 8 to foe share price, now a 
tank-like DM 567. 

The increase was not so modi a 

matter of unit sales expansion, as a 
reflection cf foe premium prices 

fimt Bib iwhmhiw ic paying fa 

new 7 series. 

Tates of even hi gher mar- 
ket prices for the product should 
cause BMW no displeasure at 8lL In 
the car business at least fasten 
ripmarwfa foe appearance of scarci- 
ty. 

To judge fay yesterday’s state- 
ments from BMW, foe weakness of 
tbedoQar-to which the BMW sha- 
re price pays such dose attention - 
is no difficulty at alL By stressing 
the dangers of US protectionism 
the company appeared to be saying 
foot its only problem in the US is 
success. In sales terms that may be 
true, but since BMW still refuses to 
give profit figures to its overseas 
guhririinrigii no outsider really 
knows the exact ^ect of currency 
twn wnwn fai on group revenues. 

Those outsiders' estimates of 
wor l dwi de earnings suggest that 
to share might be on a multiple cf 


Burlington 

For to maximisation of share- 
holder value (as the jargon has it) 
Mr Asher B. Edelman has earned 
the considerable fee that he is shar- 
ing with other investors in Burling- 
ton Industries, now foe recipients 
of a leveraged management offer at 
576 a share, as well as a share re- 
purchase offer at 580. Without sue- *■' 
cessi v e bids from Mr Edelman and 
his partners, Burlington would no 
doubt be stringing along in to re- 
gion of 550, and shareholders would 
still be looking for the elusive re- 
turn on to S2bn they had invested 
in wMvtoratsing the group’s textile 


Given to recent stiffening of 
legislative and judicial obstacles to 
takeover activity in the US, this is 
not as likriy an outcome as it would 
have seemed this time last year. 
Hostile bids are plainly more diffi- 
cult to bring "ff, after the fndfawa 
judgment- And leveraged buyouts 
are more difficult to finance, now 
that to taxregfane makes it harder 
to write qp to value of assets after- 
wards. Burlington's management - 
and Morgan Stanley - must either 
have found same means of getting 
round the new doctrine on General 
Utilities, or be supremely confident 
in the hidden treasure to be 
stripped out of the balance sheet In 
either case, there must have been 
genuine fear that Mr Edeiman 
might actually gain control 
The sequel is familiar. Morgan 
Stanley will sorely be at least as 
hard nosed in its pursuit of liquifi- 
abte assets as Mr Edelman .Some 
strands of to Burlington web will 
be teased out and sold to other tex- 
tile companies, such as Mr Edel- 
xnan’s partner, Dominion. When thp 
balance sheet has responded to an 
tiie disciplines .of leveraged man- 
agement, a smaller and doubtless 
leaner Burlington will return to the 
market with an even higher capital- 
isation than has been realised by 
MrEdelman's approach. 


This announcement appears as a matter of record only; 


o 


Blue Circle Industries PLC 

(Incorporated with limited liability in England) 


£60,000,000 


6 % per cent Subordinated Convertible 
Bonds Due 2002 


Convertible into ordinary shares 


Baring Brothers &. Co»I .united ♦ Swiss Bank Corporation 

International Tirnited 


Algemene BankNederiandN.V. 

Banque Nationale de Paris 
County NatWest Capital Markets 

limited 

Kidder, Peabody Securities Limited 
Nomura International limited 


♦ Banque Bruxelles Lambert S.A. 

♦ Commerzbank AhdengeaeHacfaaft: 

♦ Credit Suisse First Boston limited 


Shearson Lehman Brothers ' 
International !*«•- 
Westdeutsche Landesbarik 
Girozentrale 


♦ Morgan Guaranty Ltd. 

♦ Security Pacific Hoare Go vett 
Limited 

♦ Sumitomo Hnance International 


Union Bank of Switzerland 
(Securities) Limited 


May, 1987 


■ 






Friday May 22 1987 


FINANCIAL TIMES 


** ••• • • 'll '••r . 




Sweden's self confi- 
dence has been badly 
undermined not just by 
the still unsolved 
assassination of its 


Prime Minister. Mr Olof Palme, more 
than a year ago but by failings in the 
company sector, too. The challenge for 
its leadership now is to restore faith in 
what has tong been regarded at home 
and abroad as a model society, Kevin 
Done reports 

End of age 
of innocence 


-T. 


SWEDEN CAN no longer live 
isolated and at ease in a north- 
ern idyll largely protected from 
the more unsavoury aspects of 
the modem world beyond its 
borders. 

While the assassination of 
Prime. Minister OLof Palme was 
a violent intrusion into one of 
Western Europe's most open 
societies, brutally marking the 
end of an age of innocence, the 
turbulent events that have fol- 
lowed in the last year have 
served as well to underline that 
the earlier comfortable security 
of the “people's home" has 
been lost for ever. 

Economically, doubts about 
the Swedish model may have set 
in long ago, but it is now other 
certainties and values that are 
under .attack, as previously 
respected institutions and 
authorities are called into ques- 
tion. 

Hie murder of Mr Palme, still 
unsolved -alter 15 months, is 
acting as an open wound, made 
all the more painiUl by the 
growing catalogue of incompe- 
tence and mismanagement that 
Is beihgrevealed fromanalysis 
ofthe subsequent conduct of Lhe 
investigation.. '■% • v- 

While the, murder r remains 


unsolved, the vacuum has been 
filled by endless, unsettling 
speculation, the growing sense 
~ of unease has been exacerbated 
by other events, too, which have 
added to the ..atmosphere of 
uncertainty and confusion. 

. The scandal surrounding the 
smuggling of arms by Bofors. the 
Swedish . weapons manu- 
facturer, has taken a long time 
to ripen, but recently, after 
months of speculation, the first 
facts have begun to emerge and 
have served to highlight the 
innate contradictions of Swed- 
ish arms export policies, while 
also casting a shadow over the' 
000007*8 role as a champion of 
peace and disarmament while 
at the same time an important 
supplier to the world arms 
market. 

For several weeks this spring; 
Swedes have been treated to the 
unusual spectacle of a long list 
of ministers and senior civil ser- 
vants being called before hear- 
ings of the constitutional com- 
mittee (the parliamentary body 
charged with investigating the 
conduct of government minis- 
ters) to account for their roles in 
both the Palme investigation - 
and the Bofors scandal. 

A recent opinion poll carried 




/ • . a . 


: • . ' . -/>'4 -k? .v-v- < . v -*• 


















Stockholm, Sweden’s capital, from the tower of the City Hall 


out by Sifo. the Swedish opinion 
research institute, found that 
more than half of those ques- 
tioned believed that either gov- 
ernment ministers or senior 
civil servants had assisted 
Bofors to smuggle arms. 

Around 40 per cent of those 
questioned believed that the 
Bofors affair was not an isolated 
crime, but that it was a sign of 
something rotten in the state of 
Sweden. Scepticism was 
strongest among young people. 

The feelings of national shock 
and grief over the assassination 
of Mr Palme on an open street in 
the centre of Stockholm have 


been overtaken by a 

feeling of national embarrass- 
ment at the way the subsequent 
murder hunt has been con- 
ducted. 

While the Palme investigation 
itself appears to have entered a 
calmer phase under its new 
leadership, all the doubts over 
the preparedness and ability of 
the police and other public 
authorities to deal with an event 
of such dramatic proportions as 
the assassination of the Prime 
Minister, have been rekindled 
by the publication this month of 
the first part of the judicial com- 
mission of inquiry into the 


wider implications of the 
murder. 

The judicial commission says 
that the hunt for the assassin 
was not co-ordinated from the 
police communications centre, 
which meant that there was no 
overview or systematic search 
for the g unm an in the first vital 
hours after the murder. 

So far the official inquiries 
have shied away from holding 
individuals accountable, and 
have been far more interested 
in investigating how systems 
functioned. A majority of the 
constitutional, committee found 
that no criticism could be made 


PoHtlea: after Palme 

PrafUes: Call BUdt; 

AnnaLlndb 

Economy 

The tax stratum 


Foreign poOey 
Defence 


Aims Industry 
Banking and ttnaoce 
Stock market 


Palma murder hrnit 
Energy pofldes 


labour market 
Wage bargaining 
Steel Industry 
Profile: SKF 
Stockholm 


of government ministers' 
conduct 

The investigation of alleged 
Bofors 1 wrongdoing has been 
under way for more than two 
years, but even before any for- 
mal charges hav been laid, the 
management of the parent com- 
pany, Nobel Industries, has now 
been forced to admit that it bad 
illegally exported missiles to 
Dubai and Bahrain in direct 
contravention of Swedish arms 
export regulations, which for- 
bid weapons sales to regions of 
conflict 

While the competence and 
ethical values of the authorities 


are gradually being subject to a 
new kind of scrutiny in Sweden, 
so too are ethics ofthe business 
and financial world. 

Swedish business has been 
enduring its worst scandal of 
the post-war era in the shape of 
Fermenta, the embattled anti- 
biotics and chemicals group, 
once the star performer of the 
Stockholm stock exchange, but 
since expelled from the bourse 
and brought to the brink of 
financial collapse. 

The entire board, which 
included leading names of the 
Swedish industrial establish- 
ment, was forced to resign at the 
end of last year, as a profits 
forecast issued at the end of 
October of SKr L5bn for 1986 

has been transformed in less 

than four months to a loss of 
more than SKr 500m. The ousted 
former main shareholder and 
chief executive is under crimi- 
nal investigation for serious 
fraud, board members are being 
sued for damages and a wide- 
ranging insider trading 
investigation is still under way. 

The Fermenta scandal is one 
of several reasons why the 
authorities are now seeking to 
improve regulation of Swedish 
financial markets, which have 
grown at an unprecedented rate 
during the 1980s not least 
because of the virtually com- 
plete liberalisation of the 
domestic credit market 

A sophisticated and diversi- 
fied money market has been 
developed virtually from 
scratch in 1980. Stockholm now 
boasts two options markets with 
the first one showing record 
growth since it opened in mid- 
1985, while the stock market 
itself has jumped from a total 
capitalisation of SKr56bn and 
an annual turnover of 
SKr7.59bn at the end of 1980 to a 
market value of SKx40bn and a 
turnover of SKrl42bn last year. 

The dynamic growth of the 
financial markets has added a 
surprising new facet to the mod- 
ern version of the social demo- 
crats' Folkhemmet, or people's 
home, creating even in heavily 
taxed Sweden a new yuppie 
elite, which Mr Stig Mai™, head 
of LO, The blue collar workers 
trades union confederation 
sought to characterise in his 
May speech as 28-year-old spe- 
culators playing at their screens 
in a grown-up kindergarten. 

While the financial author- 
ities have pushed ahead with 
far-reaching deregulation in the 
domestic markets — not least in 
response to the winds of liber- 


alisation blowing from abroad— 
they continue to shy away from 
dismantling the core of the long- 
lived foreign exchange controls. 

Sweden is also coming under 
important pressures to adapt 
domestic institutions and prac- 
tices from another quarter, 
namely the European Commun- 
ity. The pressure is self- 
imposed, but Sweden, which 
rules itself out of direct 
membership because of its 
strict adherence to a policy of 
non-alignment and neutrality, is 
becoming deeply concerned 
about the danger of being cut 
adrift from the European main- 
stream, as the Community 
moves to create by the early 
1990s, its internal market for the 
free movement of people, com- 
modities, services and capital. 

The need to harmonise its 
own institutions with those of 
the Community could have an 
important impact on those fea- 
tures of Swedish society, which 
for so long have served to set it. 
apart In the industrialised 
world. 

Sweden still manages to com- 
bine the biggest public sector of 
any Western economy, the high- 
est taxes, the narrowest wage 
differentials and the most 
highly-unionised workforce 
with one of the highest stan- 
dards oriiving, one ofthe lowest 
rates of unemployment and one 
of most vigorous industrial sec- 
tors, with an abnormally high 
number of successful multi- 
national corporations with such 
names as Volvo, Ericsson, Elec- 
trolux, Saab- Scania. Asea. SKF, 
Pharmacia and Astra. 

As the US Brookings Institu- 
tion remarked in a major study 
on the Swedish economy pub- 
lished earlier this year, the 
Swedish experience does not 
support the claims of those who 
believe that a large public sec- 
tor and high tax rates neces- 
sarily lead to rigidities and stul- 
tification of the private 
economy. 

Whatever its achievements, 
however, Sweden is still today a 
country with a troubled consci- 
ence, with more questions about 
its social institutions and values 
than it has answers. 

As Mr Carl Bildt the young 
leader ofthe conservatives, the 
biggest opposition party 
observes: “ A lot of Swedes are 
conftised about what is going on. 
Many have seen our country as 
the middle way to paradise, but 
a lot are finding out that it is 
hardly the middle way. and it is 
certainly not paradise.” 









of bearing technology. 



and sta£e~pf-die~a/t design 


wilh precision assured in every component... 


down to the micro world of our products. 


A key priority in fee automotive industry is 
streamlining. Aerodynamic refinement seen through 
drag coefficient reductions averages at least 0.1 in fee last 
five years. And weight losses more than 10%. Marked 
improvements have been recorded in fuel economy, power 
and reliability. And SKF has been helping manufacturers 
break radically new ground over fee past decade. 

There are around 20 rolling bearings in a front 
wheel drive car, those in fee wheels subjected to the most 
arduous conditions. Within this difficult area, SKF 
completely broke wife convention - devising a single unit 
feat combines bearings, hub, stub axle and suspension 
attachment functions. 

The result is a unit feat replaces more than 10 
components and feat does more than just allow designers 
weight savings of as much as 5% per wheel. It also permits 
a shorter drive joint shaft to be used, and improves safety 
and reliability. 

And SKF is devising many more sophisticated 
solutions - units, for instance, feat solve the conflicting 
requirements of strength and reduced weight In all ways, 
we're changing fee shape of bearing technology. 

Dowd to the micro-world ofthe bearing 

Our search for new answers takes us deep into the 
micro-universe of fee bearing -where micro-changes of a 
10,000th of a millimetre are now common-place. And new 
bearing designs can yield energy savings of up to 80%. 

For this, high standards of metal-working precision 
are required -and ‘near-absolute’ accuracy has to be main- 
tained from steel purity through computerised design to 
application. 

Now, by harmonising new theory with the reality of 
new technologies we have shown how bearing life -and 
reliability- can be prolonged nigh on indefinitely. 

75 years of close customer co-operation has given 
us fee expertise to create a virtually boundless programme 
of bail, cylindrical, taper and spherical roller bearing types 
in some 25,000 variants. From miniatures weighing three 
hundredths of a gramme to giants weighing 500 million 
times more. Assuring our customers worldwide of the exact 
bearing for every application. And ultimate reliability. 

At SKF, our contribution to the automotive 
industry will continue to evolve. 


SKF. The exact bearing. 





V." 
















n 


Fiaaxtti*) Tim es JVWiy May 28 1887 


(SWEDEN 2) 


Politics 


Change of style for a new era 


SWEDISH POLITICS has 
entered a new era in the wake of 
the assassination of Mr Olof 

Palme The change in style, if 
not in substance, has been con- 
siderable, bat the contours of 
the new political landscape are 
still indistinc t 

■ Three of the major political 
parties, the Social Democrats, 
the Centre Party and the Con- 
servatives, have new leaders 
who have yet to fight their first 
election cam paigns. At the same 
time the environmental party, 
the Greens, has emerged as a 
new joker in the pack. In a suc- 
cession of opinion polls during 
the spring they have finally 
cleared the 4 per cent hurdle, 
the threshold for election to the 
Swedish parliament. 

The established parties, 
which have already 

strengthened their own politi- 
cal profiles on environmental 
Issues, are not yet taking the 
possibility of a breakthrough by 
.the Greens at the next election, 
in September 1988, very 
seriously. 

A miscalculation could prove 
costly, however, and the Greens 
might just succeed in breaking 
the traditional political mould 
In Sweden. It remains to be seen 
whether their fledgling 
organisation and untried poli- 
cies could stand the intense 
scrutiny of an election cam- 
paign, but the Greens could end 
up holding the balance of 
power, given the fine margin 
that normally separates the 
Socialist and non-socialist blocs 
in Swedish politics. 

The harsh tones that often 
Characterised the domestic 
Swedish political debate during 
Mr Palme's 17 years as leader of 
the Social Democrats have sel- 
dom been beard In the last IS 
months. The assassination of 
the Prime Minister created an 
overriding wish for national 
unity, which has supported the 
move back to a less con- 
frontational style of politics. 

Recent attempts by some of 
the Opposition leaders, most 
notably Mr Carl Bildt, the young 
Jeader of the Conservatives, to. 
Inject a more aggressive note, 
have tended to backfire. 

The more sober, measured 
sty of Mr Ingvar Carisson, Mr 
Palme’s successor as Prime 
Minister and leader of the 
Social Democrats, is more the 
norm for Swedish politics. “ If 
there was anything that was an 
aberration, it was Palme He 
was a very un-Swedish politi- 
cian,” Mr Bildt say s. 

The opportunities to score 
points off the government have 
not been lacking, but the non- 
socialist opposition parties 
have appeared strangely incap- 
able of capitalising on the 
Social Democratic administra- 
tion's discomfiture on a series 



KJefl-Oiof Fetdfc "controversial reinterpretations.” 


•of issues over the last year ran- 
ging from the ftarore over illegal 
arms exports, to divisions over 
South Africa, timing of the phas- 
ing ont of nuclear power, and 
the extraordinary fiasco over 
the handling of the Palme mur- 
der inquiry itself. 

During the spring Swedes 
have been treated to the specta- 
cle of a succession of govern- 
ment Ministers and key officials 
including the Prime Minister 
being called before th all-party 
parliamentary constitutional 
committee to be questioned on 
their handling of these issues, 
but as yet the political fall-out 
appears to have been limited. 

The non-socialist opposition 
parties have scarcely given the 
impression that they represent 
a viable alternative government 
and have often been split on key 
issue* _ _ 

The Liberals, who staged a. 
powerful revival at the last elec- 
tion in 1985 undeT their new 
leader M r Bengt Westerberg, 
broke ranks in the early spring 
and supported the Social Demo- 
crats on defence spending. At 
the same time, the Conserva- 
tives were left isolated in oppos- 
ing a trade boycott of South 
Africa, and as ever the non- 
socialist parties are badly split 
over the issue of nuclear power 
and the timetable for phasing 
out Sweden's 12 nuclear reac- 
tors. The Liberals also appear 
to be closer to the Social Demo- 
crats than to the Conservatives 
on ideas for tax reform. 

The Social Democrats them- 
selves have also faced difficult 
internal conflicts on several 
issues, but a divided Opposition 
has failed to exploit .their . 
vulnerability. 

Mr Ingvar Carisson has also 
drawn some of the Opposition’s 


teeth by seeking to involve the 
non-socialist parties in a series 
of talks on key issues, as earnest 
of the government’s intent to 
seek consensus rather than con- 
frontation. 

At one stage earlier this year 
the party leaders were meeting 
so often that political commen- 
tators began to suggest that 
Sweden was moving towards 
some form of national coalition 
government. 

Ur Carl Bildt, leader of the 
Conservatives since last sum- 
mer, insists, however, that moat 
of the all-party meetings on 

issues such as tax reform, 
defence and energy policy were 
largely shadow-boxing. The only 
issue on which there was “ an 
exchange of views of some sub- 
stance ” was the reorganisation 
of the Palme murder inquiry. 

Mr Carisson was. careful to 
keep the Opposition leaders 
closely informed as the Govern- 
ment finally intervened in early 
February to resolve' the orga- 
ui Rational chao s into which the 
murder hunt had" degenerated. 

While much remains to be 
brought to light about the 
deficiencies In both the coun- 
try’s preparedness to deal with 
an assassination attempt on a 
political leader, as well as the 
organisation of the murder hunt 
itself; the Government has man- 
aged to avoid damaging censure 
of Its own role with a majority of 
the constitutional committee, 
the parliamentary body that 
examines ministers' conduct in 
office, claiming this month that 
there was no cause for criticism. 

The Conservative leader tried 
..in March to. .raise the. political 
tempestnre • on. the issue by 
accusing Mr Sten Wickbom, the 
Justice Minister, of being & 


“ Cabinet Minister, who knows 
nothing, does nothing and 
wishes for nothing ... we have 
been forced to watch how our 
most important criminal 
investigation in modern history 
has degenerated into the disor- 
der of a hen-house." 

The attack fell largely on deaf 
ears, however, as the Govern- 
ment chose to deal with Mr Bildt 
largely by ignoring him, a tactic 
which hitherto appears to have 
reaped considerable dividends. 
Mr Bildt may now be willing to 
take off the gloves in the politi- 
cal arena in the belief that 15 
months after the assas si nation 
it is back to business as normal, 
but he lacks a willing opponent. 

The Social Democrats — 
despite the long-running 
“affairs" over arms smuggling 
and the Palme Investigation— 
have continued to dominate the 
terms of the Swedish political 
debate. They stand in a much 
stronger position midway 
through the parliamentary 
term, than they did before the 
1985 election. 

And even a commentator in 
Svenska Dagbladet, Sweden’s 
leading Conservative news- 
paper, was forced to admit 
recently that “ The most bitter 
truth for the three (non-social- 
ist) parties is that the ideolo- 
gically most aignificant^-if not 
the most for-reaching— opposi- 
tion to the direction of Social 
Democratic government policy 
comes from one of the govern- 
ment’s own members. Finance 

Minis ter Kjell-Olof FeldL 

“ In area after area he allows 
himself controversial rein- 
terpretations of what social 
democracy can ideologically 
accept and what is desirable 
from an economic point of 
view." 

Certainly if the last poll by 
Sifo. the Swedish Opinion 
Research Institute, is anything 
to go by, the Socialist bloc is set 
fair for yet another victory in 
next year’s general election. 
The Social Democrats and the 
Communists together gained 
50.1 per cent of the support com- 
pared with only 42.1 per cent for 
the three non-socialist parties, 
the Conservatives, Liberals and 
Centre Party. 

At the same time Mr Carisson 
enjoys a clear superiority In 
personal popularity. In a poll 
published by IMU in March to 
gauge voters' confidence in the 
different party leaders, Mr 
Carisson scored 72 per cent 
compared with 50 per cent for 
Mr Bengt Westerberg, the Libe- 
rals’ leader, 29 per cent for Mr 
Olof Johansson of the Centre 
Party, 26 per cent for Mr Lars 
Werner, the Communist Party 
leader, and only 25 per cent for 
Mr Bildt; the Conservatives' 
leader. 

Kevin Done 


•* I still look very young and that 
f»n be a problem, and I might 
be seen as too intellectual/" 
admits Mr Carl Bildt, since last 
summer leader of the Swedish 
Conservatives, the country’s big- 
gest opposition party. 

The last few month* have 
proved heavy going for the 
blond, bespectacled Bildt, who 
has seen support slipping in the 
opinion polls both for his party 
and for himself personally as 
party leader. . . , 

There can be no doubting hi* 
party credentials for the job, 
bat Bildt faces an uphill task in 

establishing hi* political 
credibility with a still sceptical 
electorate. 

Mr Bildl's nwng for polemics 
ami confrontation cam tend to 
h tm appear churlish on a 
Swedish political stage where a 
wish fear consensus has domin- 
ated in the months after the 
Palme murder. 

The son-in-law of Mr Gcota 
Bobmatt, Conservative Party 
leader from 1970 to 1WL Hr 
Bildt has risen rapidly through 
the Conservative Party ranks 
hfo name as the party’s 
leading spokesman os foreign 
affairs and security policy and 
becoming the youngest party 
leader in Sweden last year at 
the age of 37. 

Ironically his rise to national 
prominence was helped to no 
«™»n degree by Mr Olof Palme, 
who was leader of the Social 
Democrats lor 17 years until hi* 
anaminatio n. 

. A series of parliamentary bat- 
tles during 1988 between the 


Profile: Carl Bildt 

Facing sceptics 
in electorate 


’Social Democrats and the Con- 
servatives over- foreign and 
security policy. In which Mr 
Palme at one point accused the 
Conservatives of being a 
- security risk,” proved that Mr 

Bildt was more.than capable of 
looking after himself. The 
political wrangling culminated 
in the so-called" Bildt affair." 

Mr Bildt bad been a member 
ofthe special commission setup 
by the government In la te 1982 
to investigate incursions by 
foreign submarines into sensi- 
tive Swedish territorial waters 
close to one of. the country* 
main naval bases. The commis- 
sion placed the blame squarely 
on the Soviet Union. 

Shortly after publication of 
the report Mr Bildt made a visit 
to Washington during which he 
briefed US State Department 
officials others on iU0n* 

tjjngt 

The visit had in foot been 
organised with the assist anc e of 
the Swedish E mbass y long 
before the submarine report 
appeared, but this did not stop 
Hr Palme from mounting a 


heated attack against Bildt for 
showing " a most *«rioualwck <rf 
jud gement " in u n dert a king tan 

^I^aked reports from aj 
lug of the Swedish fonts* 
affairs council suggwted that 
Mr Palme bad accused Mr Budt 
of damaging •Swedish neutrality. 

The affoir was blown out of all 
proportion, lor Mr Palme; but by , 
the time emotions had coaled 
down, Mr BUdi’a reputation had 
become firmly established as an 
incisive debater able to foce 
down the redoubtable MrPabne 
in a policy area that the then 
prime Minister bad come to 
regard as his own exclusive pre- 
serve. „ „ 

Says one political commenta- 
tor: “ When the Bildt aOhir was 
over, everyone knew who Carl 
Bildt was. And everyone won- 
dered who Olor Palme was." 

There is no doubt that Mr 
Bildt now has the long-tena 
ambition to fill the vacuum In 
the Swedish foreign policy 
debate left by Mr Palme's death, 
but he bas still to prove that he 
can build the power base h« 



needs In the country. . 

Whatever efr* there can b© do 

doubting XT BOdtfS commit* 
menteopolWc*. Haforw^t hU 
studio* at Stockholm Univerriw 
In 3973 to become political 
secretary of the Conservative 
Party and a member of of Stock- 
to£ county taadtlim 

From 1979 »1« to had a 

central role in th* coalition gov* 
ernment’s Cabinet office M the 
Conservatives’ a ude r e e cr atery 
of Bute for Co-ordination and 
Planning, and ho played an 
Important role In the conserva- 
tives’ decision to leave the gov- 
ernment after a bite disagree- 
ment with the other oau-eodal- 
Jat parties over income Ux 
reform. . , ^ 

MrOqow 


Profile: Anna Undh 


Emergence of a bright star 


IF PAST precedent is anything 
to go by 29-year-old MS Anna 
Lindh must have one of the 
brightest political futures in 
Sweden. 

Since 1984 she has led the 
Social Democratic Party's youth 
movement (SSU), and is assured 
of being elected for a second 
term, when the SSU conference 
begins at the end of the month 
under the slogan “ the fixture is 
ours." 

Sweden’s Social Democrats 
have maintained an unpre- 
cedented hold on power, having 
governed Sweden either alone 
or in coalition for 49 of the last 
55 years,' and many of its fixture 
ministers including Mr Olof 
Palme and Mr Ingvar Carisson 
(SSU Chairman from 1961-67) 
have received their formative 
political training in the SSU. It 
is the proving ground of a 
formidable political machine. 

After taking a law degree from 
Uppsala University, Anna 
Lindh was already in parlia- 
ment in 198Z at the age of 25— at 
the time Sweden’s youngest 
MP— but she resigned a the 1985 
election to avoid any conflict of 
interest between her position as 
SSU Chairman and her 
membership of the Social 
Democrats’ Parliamentary 


Group. 

As SSU Chairman she needs 
the freedom to act as a potential 
scourge of the party leadership, 
but at the same time as a mem- 
ber of the Parly's national; 
executive committee, she is afro' 
taking part in the innermost cir- 
cle of party policy making; . 

The SSU is Itself a consider- 
able undertaking with a foil- 
time staff of 90 spread around 
the country and a membership 
of55.000. Anna Lindh, who rules 
over this youthfol empire, 
hardly bas a traditional working 
class background. Her father is 
an artist, her mother a primary 
school teacher, and she grew up 
in a country district of central 
Sweden. 

“ I don't have a political back- 
ground. My parents were rather 
progressive, but my relatives 
and the countryside where X- 
lived were basically conserva- 
tive.” 

From the age of 13 she had, 
started to become politically 
active, first In the Vietnam 
movement and therein the SSU. 
By the age of 18 she was a mem- 
ber of foe local council in foe 
town of EnkAping. For some 
years she worked in foe Labour 
movement’s peace forum with 
Alva Myrdal, who she regards as 


one of her most Important 
mentors. 

Political ambition persuaded 
her in 29M to take the SSU 
Chairmanship, even at the cost 
of losing her seat in Parliament 
and giving up ambitions of 
practising as a lawyer. "As 
Chairman of SSU Z am also on. 
the Party executive committee, 
it’s better than just being one oT 
id? mps." 

There is a steely, ideological, 
glint from the clear blue eyes 
that gaze confidently through a 
big pair of spectacles framed by 
long, unruly blond hair, but 
Anna lindh is adept at using a 
disarming sense of humour and 
ready laughter to lighten the 
uolitical message. 

She generates a sense of pent- 
up energy and Is a busy and 
articulate speaker well-used to 
addressing foe party fkithfol at 
Social* Democratic rallies 
around the country. 

On May 1 1987, Sweden's 
Social Democratic youth leader 
was taken up with the vexed 
question of the Swedish arms 
industry and arms smuggling by 
Bofors. Contrary to foe party 
leadership foe SSU is pushing 
for foe nationalisation of foe 
weapons industry — and most 
specifically Bofors — and an 


eventual complete baa on arms 


exports. 
The an 


spirit of Alva Myrdal was 
evoked on thU occasion loo, She 
” managed to work with foe 
most important question of our 
time, foe fight for peace and 
survival. That is heeded in a 
world where the US alone is 
producing 10 new H-bombs a 
day, ana where there are 
enough nuclear we a po ns to kill 
humanity 50 times over," 

For all Us radical postures 
Anna Lindh claim* that foe SSU 
has become much lest dogma- 
tically left-wing than it was 
earlier. 

Arms production, the banks 
end the pharmaceuticals indus- 
try are the only sectors that axe 
sou seen to be ripe forplueklng 
into state ownership, but other- 
wise the emphasis has been 
shifted to foe need for greater 
“workplace democracy. 

The SSU Is also pushing bard 
for shorter working hours, an 
Issue to which the Swedish 
trades unions have hitherto 
given only spasmodic support If 
Anna lindh has her way the six- 
hour working day will be reality 
by 1999, with a start being made 
now for parent* with small chil- 
dren. 

Kevin Done 




>v - * , .r; 


y .X m;# * * ■ 19 1- >3'; 

r/;. . ; : ^woiid , s leading^ ' , V. -• * V 

C* : l oorpe^aiions ih 'the Hrfmiatjdnal 'a*a«£itptoi ^mjor.fec^^ positkHMB ® y - ^ ; 

>’ « IiiwkW m nA mj feu- n t rt re ' ~ 


" •. - . . i .“ • '‘‘ip ^ ’. . . ■ ;-..V ' "i 


PROCORDIA 


Over the next few weeks the Swedish Annual Report 
Index will highlight key details from the latest annual 
reports of a series of leading Swedish corporations. 
Procordia Is a Swedish industrial group with an 
■international outlook. The turnover in 1986 amounted 
to 15.3 billion Swedish kronor, of which some 35% 
was generated abroad. The profit after financial items 
amounted to 901 million Swedish kronor. 
Procordia's activities are concentrated in the Ser- 
vices, Consumer Goods, Chemicals/Pharmaceuticals 
and Engineering fields. The choice of these business 
areas is intended to create a balance between mature 
and young, growth businesses, between high risk and 
less capital-intensive activities. This gives the Group 
financial stability and a platform for future develop- 
ment. 

The Services sector includes SARA, one Of Scandina- 
via’s largest hotel chains, fast introducing its sendee 
concept in new markets such as China and the USA. 
The sector also includes security services, educa- 
tional products and architectural and building con- 
sultants. 

The Consumer Goods sector markets a wide range of 
food products, ranging from natural medicines to dry 
foods, desserts and snacks. The Swedish Tobacco 
Company competes successfully against large multi- 
national tobacco companies. It is also the world’s 
largest producer of smokeless tobacco products. 
Pripps and Falken are the names of Sweden's two 
largest brewing companies in beer and soft drinks. 
They were recently acquired by Procordia. 

The pharmaceutical company, KabiVitrum supplies 
world markets with advanced products in Nutrition, 
Growth hormones and Haematology, while ACO 
Lakemedel is in basic drugs, primarily in the Swedish 
market. Berol dominates the Chemicals sector and is 
a producer of ethylene.amines, ethanol amines and 
cellulose derivates. 

The Engineering sector consists of a large group of 
companies foremost in transport and material hand- 
ling equipment. 


r. 


To find ont mors aboot the car* 
poratiom featured bore send 
now for yemr personal copy of 
their 1986 Annul Report. 

Please circle below for yowr 
free copies: 

ALFA-UWAL CAftDO 

CARNEGIE EUR0C FFV 

FUKT IGGESUND MoDo 

NOBEL INDUSTRIES 

PERST0RP PROCORDIA SCA 

SKF SANDVIK SKAMSKA 

SWEDISH MATCH 

Swedish Annual Report 
Promotion, Box 10029, 
S-10055 Stockholm, Sweden. 
Attach your ba ihen card or 
please pitot. 


i*: . 
•*’ 

& 


Name 


Title. 


Address. 


City + Area code 


Country 


This otter expires Oct 31, 1987 


Pi 




The economy 


Winds of 


Adding up the sums reform 


THE SWEDISH ECONOMY baa- 
made impressive process since 
the early 1980s, when the court- 
try was still considered one of 
foe sick men of Europe: 

Inflation has fallen. Last year 
foe iflatian rate at 83 per cent 
(December to December) was 
foe lowest since 1968. The cur- 
rent account of foe balance of 
payments is in surplus and the 
public-sector budget deficit ha* 
been cut significantly as foe 
brakes have bean applied to 
public-expenditure increases. 

The big devaluations of 1981 
and 1982, totalling 26 per cent, 
gave a big boost to exports and 
to industrial competitiveness. 
They also led to a surge in 
corporate profits, which has 
substantially strengthened com- 
pany finances. 

Order has been restored to 
the economy without foe para- 
llel cost of high unemployment 
and Sweden can still boast one 
of foe lowest rates of open 
unemployment in Europe at 
around 2.5 per cent (although 
that figure can be almost dou- 
bled if it is made to include 
those employed on job creation, 
training and other labour mar- 
ket support measures). 

The Social Democrats, who 
regained power is the 1982 elec- 
tion after six years in foe politi- 
cal wilderness, coined foe 
phrase “the economics of the 
third way" to describe their 
Strategy. It aimed for economic 
recovery without either tough 
cuts in public expenditure and 
high unemployment on the one 
band, or lavish public spending 
and pump-priming to stimulate 
growth on the other. 

Growth was supposed to be 
led by increased exports and 
higher investment. Sweden was 
supposed to work and save its 
way out of crisis: and for a cou- 
ple of years In 1983 and 1984 that 
happened. 

In foe last two years, however, 
with real wages finally rising 
after several years of decline, 
the economy has become 
increasingly dependent on 
higher private and public con- 
sumption to generate expansion 
and the overall growth in econo- 
mic activity has been slowing 
down. 

Last year, Swedish gross 
national product (GNP) grew by 
only L3 per cent— much less 
than officially expected The 
country could thank only fortun- 
ate external developments for 
foe fact that the economy 
remained in such good overall 
shape. 

The sharp fall in foe oil price 
and the weaker US dollar 
helped to bring down inflation 


and made a substantial con- 
tribution to foe big turnroond in 
the current account, which 
swung into a surplus of 
SKr &7bn from a deficit of 
SKr 10.6bn in 1985. At foe same 
time, lower . international 
interest rites and foe lower US 
dollar have also helped to 
reduce foe budget deficit and 
foe foreign debt burden. 

Even Mr Kjell-Olof Feldt, the 
Swedish Finance Minister, 
would admit that foe economic 
recovery has been helped by 
luck as well as judgment 
The more pessimistic obser- 
vers of the economy suggest that 
once foe effects of foe devalua- 
tions and foe oil price fall have 
worn off, Sweden will again be 
haunted by its old problems. 
These are a higher rate of infla- 
tion than in its main trading 
partners and an inability to con- 
tain wage costs at levels that do 
not erode the country’s inter- 
national competitiveness. 

. Already last yer, Swedish 
industry was losing market 
share both at home and abroad, 
at a time when Its competitive- 
ness was in fact being shored up 
by a farther significant devalua- 
tion of the Krona. The workings 
of foe Swedish currency basket, 
in which the US dollaria given a 
double weight, meanFthat the 
Krona w as devalued signifi- 
cantly against thei D-Mark and 
the Yen as a result of foe depre- 
ciation of foe US dollar. 

In its recent report on 
Sweden, foe OECD points out 
that foe tendency for wages to 
rise faster than warranted may' 
have been encouraged by past 

S lides foal have accommo- 
ted high wage increases 
through exchange-rate depre- 
ciations. 

A study on the Swedish eco-. 
nomy published earlier this 
year by foe US Brookings 
Institution suggested that 
Sweden should adopt a flexible 
exchange-rate policy in order to 
maintain foe country's inter- 
national competitiveness, 
although such a strategy is 
firmly rejected by foe OECD 
report 

It warns strongly that “a 
policy based on continued 
currency devaluation would not 
appear viable In foe longer run. 
Exchange-rate adjustment 
would probably be built into 
expectations and wage claims, 
and there would be a risk of an 
infiatiofl/devaluation spiral 
developing.” It adds that other 
ways of reconciling the targets 
of low unemployment and infla- 
tion must be sought 
In its revised budget for 1987- 
88, presented at the end of 


April, foe Swedish Finance 
Ministry acknowledges the 
risks. 

It admits that price and cost 
increases are still considerably 
higher than in Sweden’s most 
important competitor countries 
ana that consumption has 
accounted far too large a share 
of the economic growth over the 
last two years at foe expense of 
capital formation. * 

“If this pattern were to 
become permanent, the prog- 
ress achieved so far may be 
reversed," foe Finance Ministry 
warned in foe revised budget 
The words could have been 
taken from the OECD report. 

In 1987, it is again private con- 
sumption that is foe main 
impetus for growth with an ttsti* 
mated increase of 3 per cent 
after the jump of 4.1 per cent in 
1986 and 2.7 per cent in 1985. 
Net exports will he negative for 
the third year running, with an 
increase of 3 per cent in export* 
likely to be matched by an 8 per 
cent jump in imports. 

The weak development of 
exports and foe strong expan- 
sion of domestic demand are 
expected to have a significant 
impact on the current account, 
although it should remain in 
surplus. The Swedish Govern- 
ment is forecasting a small sur- 
plus of SKr Ibn compared with 
a surplus of SKr K7 bn in 1986. 

The -rate of inflation in 
quickening again and many eco- 
nomic, forecasts are predicting 
an increase of up to 5 per cent 
by December this year, although 
foe Government forecast Is 
characteristically more optimis- 
tic at 4 per cent (December to 
December). 

Inflation in Sweden' as* mea- 
sured by foe consumer price 
index, has teen persii 
higher than in most other 
countries, and although foe gap 
between inflation In Sweden 
and inflation abroad narrowed 
in the second half of 1985 and 
foe first half of 1986. there has 
been no dear tendency since 
then. 

The Government has con- 
cluded, hardly surprisingly, that 
there is only “ very limited " 
room for wage cost increases 
next year. 

Alongside foe revised budget, 
Mr Feldt has made foeJ 
revolutionary announcement 
foat foe Swedish Government 
intends to impose Cash limits In 
the state sector next year as a 
way of curbing what it considers 
to be excessive and Inflationary 
pay settlements. 

Kevin Done 


THE WINDS of tax reform 
blowing elsewhere la foe world 
have also reached Sweden. An 
intensive debate is under way 
as the parties prepare their 
political platforms ahead of 
next year’s general election 

Sweden has the heaviest tax 
burden in the Western world- 
end one of foe molt ambitious 
public sectors to support— with 
taxes equivalent to 51-52 per 
cent of gross national product. 

Xariler this year Mr Kjell-Olof 
Feldt, foe Finance Minister, put 
forwent a preliminary discus- 
sion paper as part of foe 
developing debate within foe 
ruling Social Democratic Party. 
This is expected to form foe 
basis of a more detailed tax 
reform programme to be pre- 
sented to the party conference 
in the autumn. 

It is still for from dear 
whether Mr Feldt can win party 
backing for a programme in 
which' cuts in marginal tax rates 
will be one of fob main priori- 
ties, and his proposals could be 
watered down before they pass 
foe conference. 

At foe same time, the Social 
Democrats are in a minority In 
the Riksdag. 

The reforms suggested by Mr 
Feint aim to lower income tax 
rates at the cost of reducing 
basic allowances and other tax- 
deductible items. At the same 
time, tax regulations would be 



gains. 

Tte Government has held one 
round of talks with Opposition 
party leaders during foe spring 
to explore what common ground 
there might be, but the discus- 
sions were inconclusive. It la 
now expected that an all-party 
com mission of inquiry could be 
established before the end ot 
the year. 

MT Feldt accepts that 
Sweden's present taxation sys- 
tem with it* very high tax levels 
ta an “ invitation to tax evasion 
and tax avoidance. It leads to an 
increased Informal or grey eco- 
nomy with the exchange of ser- 
vices and low productivity in 
personal employment. It leads 
to difficulties tn wage negoUa- 
ttptBtnd add* to the problems 
of fighting, inflation." 

The multiplicity of tax deduc- 
tions and high marginal rates 
»« • “ moral problem for sod- 
ety by Inviting tax evasion, he 

insisted that whatever reforms 
are agreed there is still no room 
to reduce foe overall burden of 
taxation at least before well 
into the 1890s, 





/ 


Financial Times Friday May 22 1987 




. • .. ■ t . 
V--J 


■ •-r- 


SWEDEN'S DECISION . to 
impose, a unilateral boycott on 
trade with Sooth Africa has 
marked . a . unique . departure 
from the principles of neutrality 
the country- has followed for 
almost all the the .post-war 
period.' . - . • 

At the same time the country's 
relations with both ' Super- 
powers appear , to be more 
relaxed than for many years. Mr 
Ingvar Carlsson, the Prime 
Minister, visited Moscow inyt 
year, one of oTbis first foreign 
visits after taking over as Prime 
Minister, and be is due later this 
year to make the first official 
visit to Washington by a Swed- 
ish leader for more than 25 
ye* 1 *- 

Sweden faces serious chal- 
lenges on other fronts, however.” 
Its relations with Singapore, art 
important trading partner in the 
Far East, have been clouded by 
the Bofors anna smuggling scan- 
dal, in which the Swedish arms 
company appears to have used 
Singapore, with the help of local' 
state-owned . companies, aa a . 
base for the re-export of arms to 
countries that are banned 
nnder Sweden's arms export 
regulations. 

Sweden is also seeking to 
come to terms with the adjust- 
ments that will be required by' 
.the far-reaching reforms under 
■way in the European Commun- 
ity aimed at creating an open 
internal market with a free flow 
of goods and services by the 
early 1990s, 

Sweden's neutrality policy 
has ruled out membership of 
the European Community, and 
it has had to rely instead on the 
working of the free tirade agree- 
ments between the Community 
and the countries In Efta (Euro- 
pean Free Trade Area) includ- 
ing Sweden. 

Mr Step Andersson, Foreign 
Minister, warned earlier this 
year, however, that Sweden 
must participate In the ■ new 
wave of developments in the 
Co mmuni ty, “otherwise we are 
in danger of becoming iso- 
lated— economically, tech- 

nically, scientifically and cul- 
turally." 

The issue of a South African 
trade boycott became the first 
major foreign policy challenge 
faced by Mr lngvar Carlsson 
after taking over as Prime 
Minister in the wake of the 
assassination of Mr Olof Palme, 
and the Government's response, 
initially at least, was for from 
convincing. 

Reluctant to take a step which 
might serve as an uncomfort- 
able precedent for the future, 
the Government delayed as long 
as it could fay seeking to wait for 


Foreign policy 


Challenge to neutrality 



Prime Minister fngnw Carlsson (above) and his Foreign Minister, Stan Andetsson. 


in tiie United- Nations Security 
Council 

Together with the other Nor- 
dic countries, Sweden has 
worked for wars tq faring about 
a positive docialop UN in 


favour of binding and effective 
sanctions. 

Swedish policy earlier ruled 
out. .participation in any sanc- 
tions not approved by the UN 
Security Council In addition, 
the country has been deeply 
reluctant to take any action that 

might undermine the credibility 
of international law, and in this 
case the boycott is in breach of 
the regulations in the General 
Agreement on Tariffs and Trade 
(GattV 

The ruling Serial Democrats 
traditionally have been in the 
vanguard of Swedish opinion on 
the South Africa question, but 
for a period last year they lost 
the Initiative; they appeared 
embarrassingly to be stalling on 
the trade boycott issue as press- 
ure grew both* cithin and out- 
side the party, and as both 
Denmark rand Norway pushed 
ahead with their own boycott 
plans. 

Sweden has argued that man- 
datory sanctions decided by the 
United Nations Security Coun- 
cil would be the most effective 
means of speeding up abolition 
of the apartheid system by 
peaceful means, but this line of 
action was finally blocked in the 
Security Council in February by 
vetoes from the US and the UK. 

In the face of the UN failure 
the government clearly felt that 
it had little choice but to impose 
a unilateral trade boycott if the 
credibility of its ' Southern 
Africa policy was not to be 
farthe r unde rmined. It failed, 
however, - TiT wEn unanimous 


backing from all the Opposition 
parties with the Conservatives 
declaring that they could not 
support a move that might dam- 
age the country’s neutrality 
policy. 

The Swedish Foreign Minister 
argues that " on this issue 
Sweden cannot be suspected, of 
acting on behalf of any power 
bloc or in the interest, of any 
individual state. Nor are we in 
danger of finding ourselves in 
conflict with any great power or 
of being forced to take a stance 
vifrOVis the antagonisms 

between the great powers.” 

The trade boycott “ is an iso- 
lated occurrence justified by 
the completely unique charac- 
ter of the apartheid issue,” the 
Foreign Ministry claims. 

The trade embargo legislation 
will take effect on July 1, but the 
embargo itself will first come 
into force from the beginning of 
October allowing companies 
three months to wind up their 
trading links with South Africa. 

Initially the embargo covers 
goods and not services, and the 
government is for the moment 
not taking any direct action to 
force Swedish companies with 
subsidiaries in South Africa to 
dispose of their local opera- 
tions, although Mr Andersson 
maintains that u it is my princi- 
pled belief that Swedish com- 
panies should pull out of South 
Africa.” 

Trade sanctions against South 
Africa are one of a series of 
international issues on which 
the Swedish government is 


strongly at odds with the US. 
Stockholm has also 
been outspokenly critical of US 
actions in Central America— but 
over the last 15 months there 
has been a marked improve- 
ment in the dialogue between 
the two countries. 

Sweden was one of the most 
vociferous critics of US foreign 
policy among Western countries 
during the years that Mr Olof 
Palme was Prime Minister— in 
particular during the era of the 
Vietnam War— and it is signifi- 
cant that during all his 1? years 
as party leader Mr Palme was 
never invited to make an official 
visit to the US. 

Mr Palme badly soured rela- 
tions in 1968 when, as a Cabinet 
minister, he marched at the 
head of a torchlight demonstra- 
tion through central Stockholm 
alongside North Vietnam's 
ambassador to Moscow. Shortly 
afterwards, the US ambassador 
to Stockholm was recalled to’ 
Washington for consultations. 

There was further strain at 
the end of 1972, w hen iMrPalme 
compared the US Tjombmg of 
Hanoi with earlier atrocities 
such as Guernica, Lidice, Shar- 
pevtlle and Treblinka. For two 
years from mid-1972to mid-1974 
the US had no ambassador in 
Stockholm. 

In more recent years trade 
relations have come under 
pressure as US concern grew. 
that Sweden was being nsed as a . 
conduit for the illegal export of 
US high technology equipment 


to the Eastern bloc. It is a sensi- 
tive issue for Sweden which is 
vitally dependent in many areas 
of its industry on the import of 
high technology components 
from the US. 

Tougher regulations intro- 
duced by Stockholm last year 
appear to have calmed US con- 
cerns, however, and diplomatic 
activity aimed at resuming a 
top-level dialogue between the 
two countries was started about 
15 months ago. before the 
assassination of Mr Palme. The 
Last Swedish leader to make an 
official visit to the US was Mr 
Tage Erlander in 1961. 

Priority in the talks between 
President Reagan and Mr 
Carlsson in September will be 
given to the establishment of a 
top-level political dialogue 
between the two countries, to 
export control, to achieving a 
better balance in US trade with 
Sweden, and to international 
questions such as South Africa, 
Central America, the Middle 
East and disarmament 

In terms of relations with the 
European Community, the gov- 
ernment is becoming 
increasingly anxious that 
Sweden might be left behind in 
a process of reform that is of the 
utmost importance for Swedish 
industry, whose biggest market 
is in the Community. 

“ Above all, new barriers 
must be avoided between 
Sweden and the EC countries,” 
says Mrs Anita Grad in, the 
Foreign Trade Minister. She is 
seeking to ensure that Sweden 
continues to receive equal 
treatment when it is no longer a 
question of tariffs but the diffe- 
rent areas covered by the EC 
White Paper, which aims to cre- 
ate an area in which people, 
commodities, services and capi- 
tal can all move freely. 

The areas of greatest concern 
to the Swedish government as it 
is forced to watch EC develop- 
ments from the outside are that: 

• Swedish companies are not 
discriminated against in public 
procurement; 

• The country's products do not 
have to be given more thorough 
testing than, those from the EC 
countries; 

• Patents and trademarks 
receive the same protection as 
those in EC countries; 

• Swedish students and 
travellers have the same free- 
dom of movement as citizens of 
the EC countries. 

Trades unions and some other 
interest groups in Sweden are 
still suspicious about the 
developments, and the govern- 
ment clearly faces a consider- 
able task in convincing some of 
its supporters that the process 
of creating a West European 
home market must also concern 
very large parts of the Swedish 
administration, Swedish indus- 
try and commerce, and Swedish 
working life. 

Kevin Done 



Jas 39 Gripen fighter 


Defence 


Dismay at budget rise 


FOR THE first time in 20 years, 
Sweden’s defence budget is set, 
fo!r a real increase over the five-- 
year period 1987-92 with prior- 
ity to be given to improving both 
naval and air defence. 

However, the 1.2 per cent in- 
crease (equivalent to SKr 6.2bn 
over five years) looks stingy con- 
sidering that the surrounding 
countries are increasing their 
defence spending by 3 per cent 
on average. 

So while the defence staff wel- 
comed the apparent reversal in 
government attitude, they were 
.quick to add: “ We are still going 
to become gradually weaker, 
but more slowly than before.’’ 
The opposition Conservative 
and Centre parties had both 1 
pushed for a much greater in- 
crease in defence spending and 
were dismayed when their non- 
socialist ally, the Liberal Party, 
opted to support the ruling So- 
cial Democratic Party’s modest 
proposal. 

As the Supreme Commander, 
Bengt Gustaftson, pointed out, 
Swedish Defence has weakened 
over the past 15 years with a 50 
per cent reduction in aircraft 
and a 30 per cent cut in ships.. 

Defence spending as a per- 
centage of GDP was 2.8 per cent 
in 1986, yet Bengt Gustafcson 
has emphasised that in order to 
be effective, defence spending 
should rise to 3-3.5 per cent of 
GDP in the 1990s. 

The s mall increase, which 
will be financed by raising oil 
taxes and selling off part of the 
country’s oil reserves, is seen as 
a necessary response to Soviet 
build-up in the Baltic and on the 
Kola Peninsula as well as to the 
increasing number of foreign, 
submarine intrusions in Swed- 
ish coastal waters. 

The Soviet Union has bnilt up 
its marine forces including nuc- 
lear submarines since the 1960s. 
The Kola Peninsula, geog- 
raphically considered a part of 
Scandinavia, houses the major 
Soviet naval bases and 70 per 
cent of their second-strike 
capability in war. 


This build-up, in the event of 
war, could threaten Nato’s com- 
munications across the Atlantic, 
and means that Scandinavia is 
important strategically. With 
the Soviet Union’s main ship- 
building and repair bases situ- 
ated on the Baltic coast, control 
of the entrance to the Baltic 
would play an important part in 
the event of war. 

From a Swedish point of view, 
the main problem is submarine 
incursions (Identified as coming 
from the Warsaw Pact), but with 
2.700 kilometres of coastline to 
defend, this poses a consider- 
able strain on the defence 
forces. Military experts calcu- 
late that Sweden needs at least 
three main separate forces to 
defend the coast adequately— 
today it has the equivalent of 
one such force. 

The main defences against 
submarines are the coastal cor- 
vettes of which Sweden has two 
with another four under con- 
struction and scheduled to 
come into operation in the 
1990s. These are small-hulled, 
mnlti-fanction ships, about 50 
metres long and 300 tonnes in 
weight, armed with torpedoes, 
missiles and cannon. 

The defence minister, Mr 
Roine Carlsson, described them 
as “ metal monstr ositie s ” only 
used by the navy for showing off 
but was later forced to eat his 
words as naval staff complained 
bitterly. 

Sweden has 12 submarines of 
its own, to be increased to 14 
during the 1990s. The plan is to 
gradually scrap the old models 
and replace them with the new 
class of submarine under de- 
velopment at the Kockums yard. 

When it comes to air defence, 
the most important project is 
the Jas 39, the new genera tion 
flexible combat aircraft which 
has been developed to serve 
three separate functions — re- 
connaissance, ‘attack • and in- 
terception. The Jas 39 was rol-. 
led out in April and is expected 
to start test flights by the end of 


1987. It should be in operation 
in 1992. 

The Swedish Air Force has 
ordered 30 Jas 39 aircraft and 
has an option on a further 110 to 
be delivered by the year 2000. 

The defence committee re- 
commended increasing their air 
defence with an additional two 1 
anti-aircraft missile battalions. 
The air staff have been pressing 
for extra Viggen and Draken di- 
visions in the meantime, but are 
unlikely to get these. 

The committee recognised the 
need to raise the standard of 
training and refresher courses 
given to conscripts and said that 
Sweden needed new helicop- 
ters, new missiles (for use in 
coastal defence), better intelli- 
gence services, and extra money 
to keep military personnel in 
the forces. 

In recent years, the defence 
forces have lost trained pilots to 
SAS, the Scandinavian airline, 
■where salaries are three to four 
times higher, while Air Force 
and Army technicians are often 
snapped up by industry. 

In the next 'Five Year Plan 
(1992-97), Sweden has to decide 
how to improve its tank forces, 
which are largely equipped 
with the British Centurion mod- 
el. dating from the 1950s, and 
the Swedish-built S-tank, which 
was built in the 1960s. 

Developing and building new 
tanka at home is probably too 
expensive, and Sweden is likely 
to buy the German Leopard tank 

Special priority 'wilTaTso~5e 
given in 1992-97 to improving- 
basic equipment The armed' 
forces buy cannons, guns and 
missiles from Bofors (the ordn- 
ance division of Nobel Indus- 
tries), and explosives, mines 
and grenade- Launchers from 
FFV, the state-owned defence' 
administration. But as they are 
quick to point out, it is no use 
upgrading equipment unless 
the armed forces have the re- 
sources to make good equip- 
ment widely available to the 
units. 

Sara Webb 





$• • * / >. i : ; - ; j ’•> iit i i > it ’ 1 t ri t > < k 

v h '■ \ •( • : !i h ■ ri. 'll! v. ! I > i : ( 1 s ■> 

',iin r. hi tc ■ ir ihc tv; a! d i' v. mht >/;’/ 1 -< h\ 
•U.-xr. a.M nipturcir. •>!,>'> hyihr 

s\\ ..vi/sh ,h-l i'l (. ):!( ' ‘M! xt-i.'s. 

/•>/<: i /( ir ihru'/n ,\'i ‘//Vi litrlrr. I; was 
unwl io a/!! < ly-'Ui! hy< nn'im v 
.i/ii i’h'< v < >i V Min.' ••ir- 
1 1 : ■ s ? o n .• i ■ * 'i > ; ra 1 > n s> a r< h // : < : 1 f Vo \ \ ( > ri i. !. 


SteteSfcrert is pleased to introduce oorcooi- 


Kxtgkxo. 

Hatehow we defoeMasterThisL Andnow 


cm eqioy toe same quawy sex *** 
bavetoog enjoyed ’ ■ . . 

State Street can bw*fleaIlyc«rrecotdkEQMng 
chores, no matter where your knwstmerts are 
located thrw^omdttworid. 

Oner the years, wehaeeamedareputationfiB - 


We process over 700 mutual funds and care for 
40% of theindashys total assets. And we are mas- 
ter tr u stee of over $90 bHBon in US. pension finds. 

Our dotal Custody Service offers direct access 
fixcastomcrswishjngtomvestinislmatkmlmar- 
kets-FhxnSydi^toQipenhageaParisioTob^ 
we can provide yon with securities settlement and 
income cbBecthn. 

So if you need superior custodian service fbryour 


Street Ourcredentals speak fix themselves. 

Rjt more information, please contact Michael 
Laughfo, I2fl3 Nicholas Lane. London EC4N7BN 


cmLmj fti.wn jon 


HOW WE 

LINK 

SWEDEN'S 
TRADE 
WITH THE 
WORLD 


If you do business in Sweden or 
with Swedish firms anywhere in the 
world there is one natural partner that 
stands above the restrSkandinaviska 
Enskilda Banken. 

One sound reason for this is 
apparent at once. S*E-Banken is Sweden's 
- indeed Scandinavia's largest bank, with 
Croup assets of almost USS 30 billion. 

Another is the crucial role 
S-E-Banken plays in Sweden's economy. 

Wfe have an intrinsic knowledge of 





Sweden's industrial scene and we con- 
centrate our resources and commitments 
where we have unique qualifications to 
excel. This is naturally with Swedish- 
related business anywhere in the world. 

Our definition of Swedish-related 
business includes not only the banking 
needs of Swedish companies in and 
outside Sweden but all international 
companies having any kind of business 
with Sweden. 

Through Scandinavian Banking 


Partners - the partnership agreement 
between Bergen Bank, Norway, 
Privatbanken, Denmark, Skanainaviska 
Enskilda Banken, Sweden and Union Bank 
of Finland - our private and corporate 
clients now have access to well over 
1,000 banking offices throughout 
Scandinavia. 

If you need a powerful and soundly 
based banking partner for any aspect of 
your business with Sweden, you need 
5'E‘Banken. 



& S-E-Banken 

Skandlnaviska Enskilda Banken 

Head Office KungstradgArdsgatan 8, 

S - 106 40 Stockholm, Sweden. 

Telephone: 468763 5OQ0.Tele*TI000essebi s. 
Regional Central Offices: Stockholm, Gbteborg, MaJm6. 





IV 



Financial times Friday May 2a 1867 


(SWEDEN 4) 


Stockmarket 


Companies under scrutiny 


THE SWEDISH bourse has 
scaled new heights this year 
with the Vecfcans AfEaerer total 
index breaking through the 
1,000 mark, though it has since- 
fallen back. The index has 
increased by more than 70 per 
cent since the beginning of 1886, 
and by more than 200 per cent 
since the start of 1983. while 
total turnover in 1986 reached 
an all-time record ot 
SKrl41.7bn. 

Despite the appetising 
figures, the picture during 1886- 
87 has not been entirely rosy, 
however, and a black cloud 
appeared in the form of Fer- 
ments, the scandal-riddled anti- 
biotics and chemicals group. 

Ferments was once a glamour 
stock on the Stockholm bourse, 
and its free shares peaked at 
SKr32S in January 1986. A year 
later, the stock was delisted, 
following a long series of misde- 
meanours which began with the 
admission by Mr Refaat El- 
Say ed, the former, chief execu- 
tive, that he did not have the 
qualifications he had originally 
laid claim to. 

The stock exchange board 
.delisted Ferments on the 
grounds that it had given out 
false information in its annual 
and interim reports and that its 
forecasts for 1988 had been 
grossly misleading The shares 
now trade at close to SKi20 on 
the unofficial market. 

Ferments ’s rapid fall from 
grace during 1988 shook confi- 
dence in the stock market and 
left people wondering how so- 
many private investors as well 
as respected business names 
could have been hoodwinked 
for so long. 

While the new board has come 
np with a financial rescue pack- 
age for the troubled company. 
Mr El-Sayed now faces personal 
bankruptcy and has been offi- 
cially informed that he is sus- 
pected of fraud, book-keeping 
crimes and breaches of 
Sweden's Companies Act 
• A number of farmer Fermenta 
board members are under 
investigation by the police for 
using inside information about 
the company when trading its 
shares. 

Fermenta is not the only eom- 
.pany which has come under 
I scrutiny in connection with sus- 
toected Insi der trading offences. 
The bank inspection board Has 
investigated a number of recent 
take-overs where shares of the 
target companies showed strong 
increases in price and trading 
volumes shortly before the take- 
over plans were publicly 
announced. 

The police are now investigat- 
ing cases of suspected insider 


1 Sweden: Demand and Output 1 

SKrfbn) (current prices) 

1385 

Percentage change in volume 
1984 1985 1988 1987 

Consumption 

878.4 

1.8 

2.4 

2.3 

1.9 

private 

438.6 

1.4 

2.7 

2B 

2.5 

public 

239.8 

2.4 

1.9 

1.4 

1.0 

Gross fixed investment 

104-8 

5.1 

6.3 

0.0 

3.5 

residential construction 

36.4 

7.4 

LI 

-5.0 

5.0 

private*' 

77.8 

10.3 

1LS 

-0.5 

5.0 

public (non residential) 

SL6 

-2.8 

2.9 

4.7 

0.7 

Final domestic demand 

843.2 

2.4 

3.2 

1.8 

2.3 

Change in stockbuilding 

-JL4 

tO-7 

10.6 1 

-0.1 

tO.5 

Total domestic demand 

8413 

3.2 

3.9 

1.8 

2.8 

Export of goods and services 

3G3J1 

6.7 

2.3 

2.5 

4.5 

goods 

258.7 

7.9 

3.2 

3.0 

4.8 

Imports of goods and services 

282.3 

4.5 

7.7 

3.7 

6.0 

goods 

246.3 

5.4 

8.1 

4.2 

6.5 

GDP at purchasers' values 

882^ 

4.0 

2.2 

1.4 

2.4 

Industrial production 


5.6 

2.0 

2.0 

4.0 

Industrial investments 


16.6 

19.2 

0.0 

10.0 

Producer prices 


8.6 

5.6 

2.0 

3.5 

Trade balance SKrfon) 


24.4 

16.1 

34.0 

28.0 

Current balance SKr (bn) 


3.3 

-9.5 

10-0 

3.0 

Total employments 


0.8 

1.0 

0.6 

0.4 

Unemployment rate$ 


3.0 

2.8 

2.7 

2.9 

Disposable income 


9.1 

9.3 

7.7 

7.5 

* Incl. merchant fleet, t Change as percentage of GDP previous year. 

t Registered unemployment as percentage of total labour force. 



Souk* NonHe Economic Outlook (HaKUe loaatar Im&aOen} 


trading in connection with the 
takeover of LKB, the instru- 
ments and chemicals company, 
by the biotechnology and phar- 
maceuticals group Pharmacia, 
and the takeover of the packag- 
ing paper manufacturer Ijung- 
dahis by the specialty paper 
group Munksj6. 

New legislation is expected in 
July which should help to crack 
down on insider trading by 
extending the period during 
which board members and 
employees with access to inside 
information about a possible 
takeover are forbidden to trade 
shares in the target company. 

Meanwhile, brokers are 
wondering whether the bull 
market, now entering its sixth 
year, can continue during 1987 
though the economic and com- 
pany forecasts are generally 
favourable. 

The index has been pushed up 
by a flood of money as there 
have been no new issues 
{recently to mop up the surplus 
cash. Later this year, the market 
should see its largest ever 
domestic equity issue with the 
partial privatisation of Procor- 
dia. the state holding company 
which is Sweden's leading 
brewer and cigarette producer. 

Procordia plans to raise about 
SKr lbn in new equity capital, 
reducing the state’s holding to 
about 81 per cent At a far more 


distant date, the government 
has said it would like to launch 
SSAB, the commercial steel 
group, on the market and 
recently installed new manage- 
ment to restructure the group. 

Brokers complain that despite 
appearances of a booming mar- 
ket, a lot of the trading in the top 
blue chips has fled to London 
ever since the turnover tax in 
Sweden was doubled on July 1, 
1988, making the transaction 
costs about three times higher 
in Sweden as a result 

Three companies— Pharmacia 
(the pharmaceuticals and 
biotechnology group), Volvo 
(the automotive group), and the 
industrial gas group AGA— have 
obtained a listing on the Tokyo 
exchange. Their purpose so far 
seems to be merely to increase 
awareness in those markets, 
and they have yet to try to raise 
money abroad. 

One of Sweden’s worries is 
that it will be left behind when 
it comes to global 24-hour share 
trading, chiefly because of the 
exchange’s short trading hours 
and the fact that Swedish brok- 
er* are not allowed to hold 
blocks of shares worth more 
than SKrSQm in total in their 
inventories overnight. The 
exchange is now considering 
changes to both those limita- 
tions. 

San Webb 


SWEDEN'S arms dilemma can 
roughly be summarised as this: 
bow does a neutral country 
maintain a strong arms industry 
with the highest possible degree 
of self-sufficiency and at the 
same time help to preserve 
world peace by preventing 
these arms from falling into 
"unsuitable ” hands? 

The answer is it cannot 
Sweden’s neutrality means that 
It must have Its own arms indus- 
try in order to avoid dependen- 
cy on either of the military 
alliances. But to finance the res 

search and development of up- 

to-date weaponry, the arms com- 
panies need a steady stream of 
orders from the Sewidsh armed 
forces. 

They do not always get that. 
The orders vary in size from 
year to year, so Swedish arms 
companies tend to depend on 
exports far their financial 
survivaL 

The problem here is that the 
Swedish government does not 
allow weapons exports to coun- 
tries which are at war or in 
areas of conflict such as the 
Middle East These are admir- 
able ideals for Swedes to hold, 
bat it is not always possible to 
live up to them. 

It tberefre came as little sur- 
prise to defence experts that 
Swedish weapons were finding 
their way to the Middle East and 
w ere reported to be in Iran. 

For over two years, police and 
customs have been investigating 
Bofors. the ordnance subsidiary 
of Nobel Industries, far illegally 
smuggling anti-aircraft missies, 
ammunition and explosives to 
the Middle East In March, 
Bofors finally admitted that it 
had broken Sweden’s weapons 
export regulations by selling 
arms to the Middle East via 
Singapore, as well as (raining 
Bahraini military personnel in 
the use of missiles at the Bofors 
headquarters in Sweden. 

The confession implicated the 
Singapore authorities because 
Nobel Industries said that the 
deals were carried out through 
companies indirectly controlled* 
by the Singapore government 
with end-user certificates sup- 
plied by the Singapore Defence 
Ministry. 

The Swedish authorities 
appear not to have questioned 
why Singapore bought so many 
weapons in the first place. Over 
the- past 10 years it was 
Sweden’s biggest customer, 
accounting for 10B per cent of 
Swedish arms exports. Several 
members of the present and for- 
mer governments have been 
questioned fay the constitutio- 
nal committee over their in- 
volvement in the scandaL Mean- 
while. the police investigation 
has been delayed by the death- 
suspected suicide— of the arma- 
ments inspector in January. 

Among the consequences of 
the Bofors scandal are: 


Arms industry 

Dilemma over 




a Sour relations between Stock- 
holm and Si ngapore ; 
a Government recommenda- 
tions and other to tighten 
up weapons exports still 
farther. 

a Government recommenda- 
tions to introduce restrictions 
on -weapons marketing over- 
sea r, . 

• Proposals to place more emph- 
asis on civil production at 
Bofors; and 

» A proposal to nationalise 
Bofors. 

That last proposal, by Energy 
Minister Bigttsa Dahl, was wide- 


ly regarded as a piece of poli- 
ticking and later scotched by 
the Social Democratic Party. 

Of course Sweden could avoid 
such bron babas in future if in- 
stead of tightening its regula- 
tions it chose fa live in the real 
world and relax the rules. For, 
in the words of one defence con- 
sultant, «* only the Swedes could 
think of selling weapons to 
people who promise not to use 
them— it’s like selling cigarettes 
to non-smokers.’’ 

Not all Swedes are so naive 
though. One of the country's 
arms dealers, whose role in the 


is unclear, astutely 
pointed out that Iran and Iraq 
are the biggest markets for 
weapons today. 

"What you have to remember 
is that the decision on where we 
are allowed to export oar 
weapons is a political one." says 
Mr Anders Culberg. manag i n g 
director of Nobel Industries. 

In other words, it is not all 
right to sell to Dubai and 
Bahrain (which though not at 
war, are in the conflict-tore 
Middle East), but it is all right to 
sell 155am howitzers to the In- 
dian Army even though an 1m- 


irtani reason for C&oOflug 1^ 

kSSuTSSnm 

StSun that with it* P*rttc»l« 

live spots aMo*! the pakuiM 

horde?- . 

Vnfhyt nut in record 8& 1 

SAtmonter to supply t holad tiw 
Am? with the fcowHawi ift 
£5? Sm The order if «• 
SSJd fapreildi Bofors nod to 
*ub-eontr*e*ef* wld* 

S 3 ? for *«£*««» 

at a crucial tube. wttett Bftwi 
w<e hrecteg toeir for ioor« iob 
cut*. 

Bat tee order it now befog 

investigated by the National Au- 
dUBonrafoUowtng allegation* 
by Swedish Radio that Bofors 
p£id bribes ft* sente the cob. 
tract. 

The ■BegiUws iheofcBt to- 
il* Gandhis Govomwaot, aad 
though Bofors categerwatfy cte- 
nled paying bribes, WtectM- 
pert* maintain that m there 
day* It to impossible to more 
deforce contracts of that total - 
nui* without greasing p rim s 

White Swedao ■PP!f r 
affronted by foe 
arms business, few outsider# be- 
lieve Uiat Bofors* reputation a* 
an arms manufacturer has been 
damaged. It is a leading com- 
pSyTootod particularly far to 
l*mro bowttMff m „?***"*£ 
which are accurate wttb a high 
rate of fire, are easy to are and 
efficient in doing damage 

The BBS 70 antiaircraft mi*, 
rite (Uw sort which turned up la 
the Middle East) fa a laser 
beam-rid ins missile which ex- 
perts claim la almost impossible 
to i*m- Bofors* recently de- 
veloped BILL medium-range 
anti-tank missile, which can 
reuse when it i* above to target 
and then strike downward* 
through tbetanh tonal, is consi- 
dered a breakthrough in anti- 
tank weaponry. 

In the clrdUMtaace*. It is 
Bofors’ misfortune to be situ- 
ated in Swedes. 


Webb 




w« out Its 


Banking 


Rewards from deregulation 


THE ART OF FINANCE. 

The art of success in international business is often the art of finding the right partner 
Investeringsbanken is Sweden's only genuine merchant bank. A business partner with 
financial strength. 

We can support you with industrial expertise and help you to plan strategies for com- 
pany acquisitions in Sweden and related financing. 

We can provide long- and short-term credit facilities at fixed or floating interest rates 
for any of your financial needs, such as: working capital, plant and equipment, acqui- 
sitions. We can also provide credit support through guarantees. 

If you would like to find out more about what we can do for you, please contact 
Mr Per Bersson, (telephone +46 8 791 64 58, telex 17839, telefax +46 8 10 66 38). 

Our postal address is Investeringsbanken, Box 16051, S-10322 Stockholm, Sweden. 


Investeringsbanken 

The business partner you can lank on. 


SWEDISH BANKS, on the 
whole, have basked in the 
favourable financial climate 
created by deregulation and 
liberalisation during the 1980s, 
and have been able to reap the 
rewards over the last year. 

The commercial banks en- 
joyed record profts in 1886, 
helped by falling Interest rates 
and the large gains realised by 
selling off part of their bond 
portfolios. With the removal of 
both price and volume controls 
on bank lending in 1985, the 
banks have witnessed a surge in 
lending, and have enjoyed high- 
er earnings from commissions, 
due partly to the rising stock 
market 

The introduction of two new 
instruments, bank certificates 
of deposit in 1880 and — more 
importantly— Treasury' discount 
notes in 1982, paved the way for 
the formation of a flourishing 
money market which even, some 
of the trade unions now plan to 
use to obtain a higher ret u rn on 
their capital . 

The commercial paper mar- 
ket, which began in the spring of 
1983, is now larger than its 
Dutch, French and OK counter- 

B arts, though it lies behind the 
S domestic and Euro-commer- 
cial paper markets. Standard & 
Poor’s the US rating agency, is 
working with the Stockholm 
school of economics on a credit 
rating system for the market 
whith would take into con- 
sideration the peculiarities of 
Swedish companies and local 
authorities and their accoun- 
ting pratices. 

Meanwhile, the options mar- 
ket has grown beyond an ex- 
pectations and, surprisingly in a 
country as small as Sweden, 
there are now two rival markets. 
The first options market- 
known as the Stockholm Options 
Market (OM>— started up in June 
1985, offering call options on a 
number of snares and interest 
rates. It took, off rapidly and 
launched an index option last 
December. 

Demand was so strong that a 
second market— known as 
Sweden Options and Futures 
Exchange (Sofe}— started ear^ 
lier this year without appear ing 
to steal any of the Stockholm 
Options Market's business. 

The growth has continued un- 
abated. even though the Swedes 


learned a harsh lesson about 
the risks of speculating in op- 
tions and fatures when an em- 
ployee, in the Stockholm City 
Treasurer’s office started dab- 
bling in these instruments and 
notched up losses of about 
SKr 450m causing a scandaL 
Sofa traded an average of 15,000 
contracts per day in April while 
OMs daily average was 37,000- 
Last September, the Govern-* 
ment decided to abolish the re- 
quirements for life insurance 
companies and pension fond* to 
invest in “priority bonds,” re- 
moving the final obstacle to a 
well-fhnctiotung bond market 
The priority bonds had been 
used to provide long-term fi- 
nance for the state, house-buil- 
ding and agri culture, and we re 
unpopular because the rate was 
usually 0-5-1 per cent below the 
market rate. 

The strong performance fay 
the various markets has not pas- 
sed unnoticed. in the Finance 
Ministry and, having created the 
conditions and environment for 
their blossoming .and -growth, 
the Social Democratic govern- 
ment has taken a number of 
steps in the past year to cream 
off some of the rewards for re- 
distribution— either through 
taxes or compulsory donations. 

Take the stock market, for 
example. The bull market, now 
running into its sixth year, 
raised eyebrows. Mr KJ ell -01 of 
Feldt, the Finance Minister, de- 
cided to double the turnover tax 
from July 1 1988. 

The move was partly meant as 
-an appeasement gesture to the 
trade unions who had been told 
that wage increases must be 
kept down at a time when it was 
blatantly clear that the coun- 
try's financial markets were tur- 
ning in huge financial gains. 

Though the bull market has 
continued into 1987 and 
reached record heights, Swed- 
ish brokers complain that the 
higher turnover tax has chased 
u certain amount of business in 
the largest Swedish stocks to 
London, where the transaction 
costs are now about a third of 
those in Stockholm. - 
By September, it was time to 
sort out the life insurance com- 
panies and pension fonds which 
had performed very well due lo 
high yields on their invest- 
ments. The Finance Minister in- 


troduced a **one-offtax” of 7 per 
cent on total assets to be paid at 
the end of 1988. 

This was intended to raise 
SKrlS-lSbn in revenue, and was 
widely condemned aa a means 
of "confiscating capital.” Two of 
the life insurance companies 
affected. Skandia and Wasa, 
hope to take their case to the 
European Court and prove that 
the government?* action was 

Then, in December, it was the 
banks’ turn. Mr Ingvar Carlsson, 
the Prime Minister, thought it 
would be a good idea if some of 
their profits were siphoned off 
to fiqid research and develop- 
ment at Swedish universities. 
Without going through parlia- 
ment, he asked the banks to 
“ donate "'SKr 600 m over the 
next three years, to be paid in 
proportion to their profits. 

The banks were too cowardly 
to protest— as one managing di- 
rector put it. " When the Prime 
Minister makes that sort of re- 
quest you cannot refuse.” Mr 
Erik Ehn, chairman of the Swed- 
ish banking federation and 
managing director of Nordbank- 
en, excused the banks’ com. 
plianee by saying: “There is a 
clear understanding that the 
Government will not increase 

our taxes,” 

The shareholders, were fu- 
rious. however, and the annual 
shareholders’ meetings, this 
spring were some of the longest 
and stormiest in Sweden’s bank- 
ing history. 

The latest group to be visited 
by the tax spectre are the op- 
tions and future markets— Mr 
Feldt announced that he would 
broaden the securities tax base 
to include options and futures, 
estimated to raise about SKr 
200m. The tax is not expected to 
have a deleterious effect on the 
markets, however. 

Foreign banks have started lo 
show their mettle since being 
allowed to setup subsidiaries in 
at the banning 00986. 
Initially, 13 banks started up in 
Sweden: Societe General. Ban- 
que National e de Paris. Banque 
fodosuez (in a joint venture with 
Finland’s Postlpankki), Credit 
Lyonnais, and Banque Paribas 
of France: Citibank and Manu- 
facturers Hanover or the US: 
Den Norske Creditbank and 
Christiania Bank of Norway; 


KansaJJLIs-Osake-Paukki and 
OKOBANK of Finland; and 
Algemene Bank Nederland of 
the Netherlands. 

Their presence has been felt 
mostly in the foreign exchange 
and money markets where the 
numbers of players virtually 
doubled overnight In addition, 
they axe trying to develop im-. 
port-export financing link* with 
the major Swedish groups 
where they have the advantage 
over Swedish banka of being 
able to offer worldwide branch 
networks. 

In May 1987 Svenaka Hand- 
elsbanfcen, the second largest 
bank, became the first Swedish 
bank to open up an overseas 
branch In New York, following 
foe relaxation of rules on this 
front' Skandinavista Enskilda 
Banken, the leading bank, plans 
to follow suit in the autumn. 

With the arrival of the foreign 
banks; competition is the 
domestic market baa increased. 
Doe reaction to this was the 
formation of the Goto Group, a 
banking and financial services 
group which controls Goto bank, 
en (the country's fourthdargest 
pubhcly-auoted bank) and 
Wemiandsbanken <a regional 
banki. as well aa Stock broker- 
ages, leasing and finance com- 
panies all under one holding 



ment company Proventua. 
whose plans to expand In this 
rector caused quite a stir in the 
Finance Ministry where the 
idea of a bank being controlled 

^holding com P*°y ** rather 

The Ministry reacted by prop- 
.temporary legislation 
with effect from July i, 1S87 so 
that a holding company would 
be subject to the same regul*. 
tions as ordm&ry bank*, chiefly 
to pre vent the holding company 
from removing capital from the 
tonkand exposing deposits. 

Further, tire legislation will 
•flow banks to own stockbrok- 
ers, whereas before they were 
to run in-house 
Jteckbroking operations, The 
conditions are now set for ftirth- 
ershake-ups in the banking and 
financial sector. 

Sam Webb 


M 



/ 


Financial Times Friday May 22 1987 


SWEDEN 5 


Energy 


' m - *■ *- f 


SWEDEN, van Mr* BirgJtta 
Dahl, is like a young girl pur- 
sued by suitors. The Energy and 
Environment Minister was not 
ta l king about Swedish morals in 
this case, but about the way 
neighbouring countries have 
been trying to take advantage of 
Sweden’s plans to phase out 
nuclear power by offering to 
sell their own particular energy 
alternatives. 

With the first of the country’s 
X2 nuclear reactors due to be 
phased out over the period 1893- 
95 (provided that alternative’ 
forms of energy can be found) 
the pressure is on. A second 
reactor may be closed down 
between 1994-96 and the even- 
tual deadline for closing all the 
reactors ia 2010, as set by the 
1980 -referendum apd subse- 
quent parliamentary vote. - 
The fact that the government 
has decided to speed up the 
closure programme is largely 
attributable -to the Chernobyl 
disaster. The Swedes, after all, 
were the first to detect 
unusually high levels of radia- 
tion at the Forsmark nuclear 
power station, and sounded the 
•alarm about a nuclear accident 
in the Soviet Union. 

Radioactive caesium was 
.found in various foodstuffs, and 
contaminated food valued at 
about SKr 150m had to be 
destroyed. More than 80 per 
cent of the reindeer slaughtered 
in Sweden were declared unfit 
for human consumption, and the 
government was forced to pay 
compensation to the Lapp 
herdsmen who make a living 
from selling reindeer meat 
One official says: “ Chernobyl 
was a turning point in Swedish 
energy policy in that the indust- 
rial sector didn’t really believe 
there would be a phasing out of 
nuclear power beforehand. 
Afterwards, they did." 

This is not to sasr that the 
industrial sector sat silently 
throughout the nuclear debate. 
Several representatives of 
.industry— hacked by the Swed- 
ish Energy Council's report. 
After Chernobyl — have warned 
that hy phasing oat nuclear 
power (which accounts for 
about half of the electricity pro- 
duced In Sweden), electricity 
prices will; nadurslly increase 

lose their auapeiitte© edge - 
.abroad. The-iraq* pulp 
and paper,- ajm'-'Shemcals 
industries ta parthhmr would 
be badly hit . - ' 


leighbours vie to 
fill nuclear gap 


' -- -L 


ENERGY SUPPLIES 


<ks TerawaWhem) 

tSL 

1985 1986 1987 
Indtatry 140 13B 139 

Trawport 74 7? 7B 

Horos,sefvfcc - 165 164 163 

Foreign ships, 

otter 63 69 68 

Total used 443 450- 449 

Of which: 

Oil 213 216 209 

Natural gas 12 3 

Coatfcoke 34 35 36 

Domestic tael 62 64 63 

Hydropower, 
nuclear power, 
waste but sod 

district heatiag 133 133 137 

Source: National Energy Board 

Mr Cayl-Erik Nyqvist, general 
director of the state power 
hoard, said that electricity 
prices could be expected to rise 
by 50-100 per cent with the phas- 
ing out of nuclear power and 
that the closure programme 
would cost the country about 
SKrlOObn. 

The government still has to. 
decide which reactor to close 
first The Danes would like it to 
be Barsebfick because the 
power plant is situated in south- 
ern Sweden close to both 
densely-populated Malmo and 
Copenhagen. Yet Barsebick is 
supposed to be the safest of all 
the Swedish reactors. 

- What then axe the alterna- 
tives? Xn its research and 
development budget this spring, 
the government decided to put 
SKrLOSbn aside for energy 
research over the next three 
years, in particular looking at 
more efficient uses of energy 
and possible alternatives. 

In future, priority will go to a 
more efficient use of energy in 
both industry and households, 
and the use of waste heat to 
produce electricity. 

But how to replace nuclear 
power which today acounts for 
60-6$ Terawatt/hours (Twffi? 
Hydropower, which provides 
about the same amount, cannot 
be increased without exploiting 
new rivers. 

There are four big unex- 
ploited rivers left in Sweden in 
areas of outstanding beauty and 


the environmentalists axe loath 
to let these go — though even if 
they did, the rivers could not 
totally replace nuclear power, 
providing perhaps an extra 20 
TwH. Instead, a few of the smal- 
ler rivers could be used to boost 
hydropower fractionally. 

The most likely main alterna- 
tive appears to .be natural gas, 
which to date only accounts for 
6-7 TwH. The National Energy 
Board claims that the initial 
capital and maintain an ce costs 
for gas power stations (espe- 
cially combined cycle turbines) 
are lower than for coal power, 
though total " cost would of 
course depend on the gas price 
negotiated. 

Sweden started importing 
natural gas from Denmark in 

1985 and has a well-developed 
network in south and south-west 
Sweden which is due to reach as 
for as Gothenburg in the sum- 
mer. Relations with the Danish 
suppliers were strained when 
they refused to lower the price 
on the initial contract in line 
with falling oil prices— which, 
the Swedes maintain, means 
they are being overcharged by 
20 per cent 

Meanwhile, the Norwegians 
have been courting Swedish 
interest in the Haltenbank gas 
field, which is thought to con- 
tain 300-350bn cubic metres. 
The energy board estimates that 
Sweden would have to import- 
about 40 TwH’s worth of 
electricity— or 4b a cubic metres 
of natural gas each year to 
replace nuclear power. 

A recent report by the 
National Energy Board sug- 
gested extending the pipeline 
across central Sweden as for as 
Stockholm and Gavle, on the 
east coasL This would open up 
the possibility of joining on to 
the Finnish pipeline ana either 
baying direct from the Soviet 
Union or from Finland. 

Meanwhile, the Swedes have 
been drilling on their own soil 
in the hope of finding natural 
gas, even though the area under 
investigation lacks the 
sedimentary rock formations 
normally associated with fossil 
feel finds.’ 

So for, the Dala deep gas pro- 
ject in Central Sweden has only 
come, across traces of natural 
gas and is regarded with some 
scepticism— though if huge 
reserves of gas are discovered, 
it could solve Sweden’s energy 
problems for the new decades. 

Sara Webb 





Tbomanits of Stscffhoim reskfonts crowd around the flotvar-covorsd street coiner where Prime Mlidstor Ojof Palme mss assassinated 


" „ ■ * ■ * i - •" j 


The Palme murder hunt 


A nationally embarrassing bungle 


THE ASSASSINATION of Mr 
Olof Palme threw Sweden into a 
state of national shock and 
grief; but 15 months after the 
Swedish Prime Minister was 
shot dead on an open street in 
central Stockholm, the manner 
in which the bunt for his killer 
has been conducted has become 
a source of national embarrass- 
ment 

Swedish police today appear 
no nearer to finding the assas- 
sin than they were in the first 
chaotic hoars after the killing, 
when Mr Palme was gunned 
down at close range as he 
walked home — without any 
bodyguard — with his wife from 
an evening cinema visit 

Two bullets found during the 
first 48 hours by casual passers- 
by at the murder scene, outside 
the confines of a limited area 
cordoned off by the police, 
remain the only concrete leads 
in the bunt There is no murder 
weapon, no motive and no 
murderer. 

By the beginning of February 
this year the investigation itself 
had ground to a halt as the hunt 
degenerated into an embarras- 
singly public quarrel between 
the pofice and the public pro- 
secutor’s office over what lines 
of inquiry to pursue. 

The simmering conflict 


between the two law enforce- 
ment agenc ies had already 
broken into the open once 
before only a few weeks after 
the assassination as police 
suspicions moved heavily 
against one key suspect 

A man— known in Sweden as 
“ the 33-year-old "—was 

arrested and charged with tak- 
ing part in the murder, but 
within days he had been 
released for lack of firm evi- 
dence. 

Mr K. G. Svensson, the senior 
prosecutor who had worked on 
the Palme murder investigation 
from the start, resigned from the 
case and made startling accusa- 
tions against the police claim- 
ing that the 33-year-old’s legal 
rights had been seriously 
violated. He said that his posi- 
tion as prosecutor had been 
compromised by police leading 
the investigation, and he com- 
plained of interference in his 
work by the Ministiy of Justice. 

Mr Svensson was replaced by 
Mr Claes Zeime, the chief pro- 
secutor in Stockholm, but the 
tensions between the prosecu- 
tors and the police led by Mir 
Hans Holmer, the hard-bitten 
and controversial Stockholm 
police commissioner, remained. 

It was Mr Holmer who had 
.assumed direct leadership of 


the investigation at the outset, 
and who had staked his perso- 
nal prestige on tracking down 
the killer. 

Effectively the number two in 
the Swedish police hierarchy, 
Mr Holmer backed from an 
early stage what came to be 
known as the “ huvudspar," the 
main line of inquiry, which 
dominated police work for many 
months, and which sought to 
link the assassination to the 
PKK, the Kurdish Workers 
Party, a Marxist-Leninist group 
established in Turkey in the 
1970s to fight for a free Kur- 
distan. 

Members of this group, 
branded as a terrorist organisa- 
tion by the Swedish authorities, 
have been active in Sweden for 
several years, and have been 
found guilty of two previous 
murders in 1984 and 1985. 

The public prosecutor’s office 
appears never to have shared 
the police's enthusiasm for the 
PKK line of inquiry, and the 
conflict of opinion finally 
boiled over earlier this year, 
when the police launched an 
abortive swoop on Kurdish and 
other suspects. 

Three of 20 suspects taken 
into custody for interrogation in 
the dawn raids were told they 
were suspected of complicity in 


the preparation of the 
assassination, but within hours 
they had all been released 
again on the orders of the pro- 
secutors because of lack of evi- 
denca The police were out- 
raged and accused the prosecu- 
tors of “sabotaging” the 
inquiry. 

The government in the shape 
of Mr Sten Wickbom, the Justice 
Minister, had already tried to 
contain the destructive 
quarrelling between police and 
prosecutors, but without suc- 
cess; and finally the government 
was forced to concede that 
nothing short of a wholesale 
change in the leadership of the 
investigation would suffice to. 
end the conflict i 

In early February, as press-' 
tires on the authorities grew 
with the first anniversary of the' 
murder only a couple of weeks 
away, the Prime Minister him- 
self; Mr logvar Carlsson, was 
compelled to step in with the 
fiill weight of the government in 
an attempt to restore some 
semblance of order. 

In an effort to get the murder 
hunt restarted Mr Carlsson 
moved ultimate responsibility 
for the investigation away from 
Stockholm to the highest level 
of the national police force and 
the national public prosecutor's 


office. 

For a couple of weeks confu- 
sion remained over the role of 
Mr Holmer, who became a mem- 
ber of a three-man advisory 
group to the national Police 
Commissioner, but in early 
March he issued his own bitter 
resignation claiming that, 
“when bureaucracy triumphs 
over reason 1 can no longer con- 
tinue,” 

In a final attack on the pro- 
secutors he said: " When 1 
Sweden's Prime Minister is shot 
dead on the open street, the 
prosecutors' only thought is that 
the investigation must follow 
normal routines. That is just as 
clever as trying to climb the 
Himalayas with methods and 
equipment based on a hike in 
Jutland." 

New theories for the motive 
behind the Palme assassination 
are put forward at regular inter- 
vals, but after the PKK fiasco 
none has attracted particular 
official support 

Hardly surprisingly a major- 
ity of Swedes have already given 
up hope. According to a recent 
opinion poll 67 per cent of the 
population now believe that the 
Palme murder will never be 
solved. 

Kevin Done 


•" ■* ’ i" »».”■* .*JlV * * 1 ' .. " 7 





• .. - vt 




■ £ k 


, * f " v V- • » , ; y- v..’ 7 

... : 




•**.■**.’£■ i.'cv 


* " 

-4*. 

-v*. . 




Our first century has given us a legacy of concrete financial 
strength, creative technology and powerful engineering. Plus 
experience gained through a century of dynamic building. 
Meeting challenge with achievement, Skanska has today 
become one of Europe’s leading contractors, and as a truly 
global builder, we’re always redefining our reputation for 
handling advanced projects in every continent. 

• We’ve built hundreds of bridges, power stations, airports, 
harbours and factories. Plus roadways, tunnels and subway 
systems that add up to thousands of miles. As well as millions 
of human habitats, including hotels, housing, hospitals, offices, 
tourist resorts and complete communities. With total project 
responsibility, we’re resourced to deliver fully functional instal- 
lations, quality assurance, and significant financial gains. 

Turnkey delivery reinforces our impressive record for fast, 
economic and reliable construction. On time and on budget 
has been our uncompromising pledge for 100 years of civil 
engineering. It’s a promise we always make, and a promise we 
always keep. It's just pan of our concrete strength. 

SKANSKA 19S6: 


' • - w ■ 





Consolidated Balance Sheer. December 31, 1986. 


In millions of Swedish Kronor (SEK M). 


Exchange rate: SEK 1,000 = USD 158.19 (April, -87). 


Assets 


1 labilities and shareholders' equity 


Bank balances 

1,414 

Current liabilities 

4,720 

Rece/vabtes 

6.9S2 

Uncompleted contracts 


Investment and development 


Invoiced sales from 


properties 

4.248 

12,644 

beginning of contracts 16,515 

Accumulated expenses from 



beginning of contracts -1 3,082 

3,433 

Other receivables 

566 


8,153 

Shares and participations 

4,040 



Machinery and equipment 

961 

Long-term liabilities 

4,292 

Fixed-asset properties 

1,085 

Untaxed reserves 

4,736 


Capital stock 

617 



Reserves 

1,013 



Net profit for the year 

485 

Total 

19,296 

Total 

19.296 

Consolidated revenues 1986 — SEK 16,103 M 


A hundred veatx aco we bad KSCd C©TKj«ur spans with mw strengih. Today, the power of electronics leads us into a new- age, bur the suength of our buildings is jusr as permanent 
A hundred y«ar* ago « ^ preSc ^ tc ^ iueh fasten Our ftitunr is yet to be told, bur the outlook »s promising mdeed. 


The Civil Engineering and Building Contractor. 

International Division: 

Skanska, S-21102 Malmo, Sweden. Telqshone + 46(40)144000. 
Telex 32247 skanska s. Telefax +46(40)114303. 




*) . 








VI 


Financial Times Friday May » l** 7 


(SWEDEN 6) 


Labour market policies 


Strong full-employment drive 


TWO PERCENTAGES, 83 and 
2.7, illustrate the most distinc- 
tive features about the Swedish 
labour market 

Sweden Bas ah 83 per cent 
level of participation in employ- 
ment among people of working 
age— a very high rate by inter- 
national standards and one 
which particularly reflects an 
exceptionally large number of 
working women. Assisted by 
relatively cheap and extensive 
child-care arrangements, four 
out of five working age women 
have jobs. 

Against this high rate of par- 
ticipation in the labour market 
is set the 2.7 per cent figure: 
Sweden's unemployment rate, 
which is one of the lowest in 
Europe. Even in the worst days 
of 1982-83. when unemployment 
in Sweden peaked, the rale was 
only 3.5 per cent 

The 2.7 national percentage 
inevitably fails to convey the 
fall picture of unemployment in 
Sweden. Some employees in 
part-time jobs would prefer full- 
time posts if they were avail- 
able. 

About 35 per cent of the work- 
force, including disabled 
people, are engaged in special 
government schemes outside 
the conventional labour market 
And there are important regio- 
nal variations — unemployment 
rates in northern Sweden are 
five times those of the Stock- 
holm area. 

Rut even with all the qual- 
ifications, Sweden's unemploy- 
ment rate is outstandingly low 
and has been brought down over 
the past four years in spite of a 

growth in the size of the labour 
force. 

Yet there is no complacency 
about the 2.7 per cent figure. 
Full employment is a central 
goal of Swedish economic policy 
and a widely-held value in soci- 
ety. This, coupled with concern 
about the impact of unemploy- 
ment on particular groups .and 


the need for Swedish workers to 
cope with technological chax 
has led to a labour max 
policy becoming an increasix 
fundamental element of over 
economic policy. 

“There is a consensus in 
Sweden that we sbould not 
allow unemployment to rise,” 
says Mrs Anna-Greta Lei j on. 
Minister of Labour in the Social 
Democrat Government. “ But we 
must not assume that such a 
consensus will always automa- 
tically be there and stop talking 
about the evils of unemploy- 
ment. Our unemployment rate 
has come down, but it is high for 
the people concerned. We have 
to do more.” 

Mrs Leijon set up a long-term 
planning group in her depart- 
ment to examine the role, direc- 
tion and scope oflabour market 
policy for the remainder of the 
19805 which reported last year. 
This concluded that general 
economic policy, education and 
Labour market policy must be 
more closely interlinked. 

Lord Young, the British 
Employment Secretary, is visit- 
ing Sweden this month and, 
although his government and 
Mrs Leijon’s have different 
iliticai perspectives, he will 

Iscover a number of common 
priorities. 

The report on which the 
Swedish Government is basing 
its policy calls for greater adap- 
tability in the labour market, 
higher priority for training mea- 
sures. action to tackle a growing 
problem of long-term unemploy- 
ment and more efficient use of 
resources in the public employ- 
ment service. 

It also declares that “ perhaps 
the most important Geld when it 
•comes to improving the effi- 
ciency of the labour market is 
that of educational policy.” 

Sweden, like many countries, 
is engaged in an increasingly 
anxious debate about the extent 
to which its schools are or are 


not meeting the needs of the 
economy. Unlike Britain, most 
young people in Sweden remain' 
in full-time education and do 
not enter the labour market 
until they are 18L 
The Government is currently 
discussing introducing more 
practical and vocational ele- 
ments into the high school curri- 
culum for Sweden's 18-year-olds 


leaders that the private sector 
should offer places on the 
Youth Teams progress. 

An important priority in 
Sweden's efforts to hold down 
unemployment and improve 
labour market efficiency has 
been a drive to devise a better 
.employment service. 

The employment offices are 
regarded as the foundation- 


Sfi 


In an attempt to make them bet- stone of labour market policy 
ter prepared for work. and Mr Allan Larsson, director 

A structured approach to general of AMS, accepts that in 
labour market policy and the the early 1980s contacts 
operation of special employ- between the employment ser- 
ment measures has a long his- vice and employers were poor, 
toxy in Sweden. The National with placement officers having 
Labour Market Board (AMS)— little knowledge of employers' 
with many of the same responsi- real needs and too much time 
Dilities as Britain's Manpower being spent on administratioxL 
Services Commission— has Strenuous efforts have been 

existed since 1940, and all made since then to bring the 
employment offices were service closer to its customers, 
nationalised in 1948. Personnel have been transfer- 

vocational training schemes red from administration to 
were developed at the same customer contacts, and a new 
time, and it is on the basis of goal-setting management struc- 
these origins that Sweden has ture has been introduced, 
expanded its measures for the The service now takes an 
unemployed during the difficult average of three weeks to fill a 
years of the 1980s. vacancy, compared with six 

These measures currently weeks in 1979 and ten in the 
include training for both the early 1970s. Extra staff are 
unemployed and employees fac- being recruited to ran the 
ing changing skill require- employment service and the 
ments — about 1 per cent of the AMS's counselling, training and 
labour force is in training at any special employment measures, 
time and during a year about 3 In spite of Sweden's relatively 
per cent go through such train- low unemployment rate and 
ing— temporary jobs in the pub- strong concentration on labour 
lie sector for unemployed market policy, the indications 
people, and the Government's are that— like most of its neigh- 
Youth Teams scheme for the bouts — it will continue to need 
young unemployed. special employment measures 

Under this programme, muni- for the forseeable future, 
cipalities are required to pro- But the number of people on 
vide work— normally part- such measures fell last year 

time— for all 18 and 19-year-olds while the number In regular 
who have been without employ- employment rose by 40.000. and 
ment for at least three weeks, the percentage of the AMS'S 
Young people who refuse to join expenditure devoted to benefit 
the Youth Teams cannot claim payments was reduced for the 
unemployment benefit. first time in the 1980s. 

The Government has been 
trying for several years to per- 
suade employers and union Alan Pika 



PPOfUfc «F 

Defending 

every 

market 


Worker checking rotten on a machine for printing mffle and Juice cartons. 


Wage bargaining 


Doubts about the system 


COLLECTIVE bargaining in 
Sweden since the 1950s has 
been based on a system of 
centralised negotiations 

between national trade unions 
and employers' organisations. 

Under this system — for long 
credited with main taining 
industrial peace— the national 
negotiators, if necessary with 
the help of a mediator, pro- 
duced a recommended 
framework leading to detailed 
agreements at industry level. 

Any outstanding issues at 
company level were then 
resolved by local manage m ents 
and union officials and the gov- 
ernment stayed out of the whole 
process, taking the view that 
collective bargaining was a mat- 
ter for the two sides of industry 
alone. 

The system held together 
through the 1970s, even though 
economic turbulence made it 
more difficult for governments’ 


Attention all 
Scandinavians. 

Recently been, or about to be, 
transferred to the UK? 

If so. are you aware that pension provision in the U K. 
for Scandinavian nationals differs considerably from that of 
your country of origin - therefore independent advice is 
essential 

Is your salary paid in other currencies as writ as sterling? 

if so, have you considered an international investment 
medium which can. also provide far your retirement? 

We are the London subsidiary of Sweden's leading 
independent professional Insurance and Pensions 
Consultants and have considerable experience in arranging 
highly attractive and flexible pension arrangement for 
Scandinavian nationals worldwide. 

PLAN NOW 


Delay in making the proper provision 
will be expensive. 


For further information, quotations and details of 
our other services, please write or telephone (asking for 
Bo Sbderman, Tony M u riy-G otto or Steven Harmer),forafree 
initial consultation. 

Soderman & Soderman (UK) Ltd 

20/3 Tooks Court ■ Curator Street ■ London EC4AILB 
Telephone: 01-430 0432 - Telex: 269232 Soder G - Telefax: 01-405 7506 


SUPERMARKET CHAIN EXECUTIVES 


i a u i >; 


HAKE THE MOST OF TOUR IN-STORE BA] 

Revent’s professional in-store bakery ovens and 
p rovers are boosting sales in supermarkets throughout 
the world. 

Revent “ compact-footprint" baking systems add style 
to your store while top quality and unsurpassed 
reliability send profits soaring. 

Write or call today for your nearest distributor! 


UHTERMATKIMJU-JkB 

PO Box 714 

S-194 27 UPPLANDS VASBY 
SWEDEN 


Telephone 
+46 768 921 20 


Telex 

197 21 RE VENT S 


Telefax 
+46 766 942 10 


In 1986, Iggesund mark- 
edly improved its 
earnings and strength- 
ened its position. 

As Europe's leading quality board producer, IGGESUND 
iNVERBOARDhas further raised its market shares by de- 
veloping new, superior products. IGGESUND TIMBER'S 
results were also up. despite a tougher market. Another 
strength is Iggsund's aooess to its own ample supplies of 
electricity and wood. 


OS IGGESUND 


Steel industry 


Facing restructuring 


SVENSKI STAL (SSAB), 
Sweden's largest steel produc- 
er. is set for another painful 
restructuring exercise of the 
type which has become such a 
common feature of the Euro- 
pean steel industry in recent 
years. 

The company, in which the 
Swedish government has a 
majority stake, has announced a 
closure programme which will 
cost 2^00 jobs — 15 per cent of its 
workforce— over the next three 
years. Behind the closure prop- 
osals are a drive by a new man- 
agement to focus SSAB's activi- 
ties on more narrowly-defined 
market activities, and a plan to 
take the company to the stock 
market in the next few years. 

SSAB was formed in 1977 from 
an amalgamation of Sweden’s 
three largest general steelmak- 
ers. A restructuring following 
the amalgamation led to a 25 per 
cent redaction in capacity to 
just over 3m tonnes and a 20 per 
cent cut in the workforce. 

The international pressures 
of the steel industry have con- 
tinued to afflict the company, 
however, and in November the 
government brought in a new 
management under the 
chairmanship of Mr Bjorn Wahl- 
strom — a former president of 
SSAB to plan remedial action. 

At the same time Electrolux, a 
minority SSAB shareholder, 
sold its investment to the Gov- 
ernment and a consortium of 
Swedish insurance companies 
and pension funds took a 33 per 
cent stake. The Government, for 
its part, agreed to the company's 
stock market flotation by 1993. If 
it does not take place the Gov- 
ernment will be required to find 
other buyers for the private sec- 
tor’s 33 per cent holding or bay 
back the shares itself 

The rationalisation plan pro- 
duced by Mr Wahl strom ana his 
management would concentrate 


SSAB's output on strip mill pro- 
ducts and associated activities. 
It is intended to invest more 
than SKr lbn in these core func- 
tions. Some other activities 
which the management consid- 
ers support the core business- 
such as its heavy plate division 
at Oxelosund and its long and 
heavy product range at Lulea — 
would also survive. 

But the plan also involves the 
closure of SSAB's iron ' ore 
mines at Grangesberg and Dan- 
nemora, its electric arc furnace 
for making steel from scrap, the 
Morgan works at Domnarvet 
which produces wire rod and 
reinforcement bars, a light sec- 
tion mill at Lulea and a hot strip 
mill at Surahammar. 

In terms of numbers, the job 
losses involved in the program- 
me are not great compared with 
many that have been suffered in 
the European steel Industry. 
But the impact which they will 
have an the communities in- 
volved will be dramatic. 

Mining activities at Danne- 
mora and Grangesberg dates 
back many centuries, and the 
steel industry dominates 
employment in the towns. The 
company’s closure proposals 
have already attracted illegal 
industrial action in SSAB, and 
union leaders are resisting 
them furiously. 

The Swedish Industry Minis- 
try has been conducting an in- 
vestigation to see whether any 
production at the mines can be 
continued. SSAB management 
has stressed to Government offi- 
cials that its aim is to secure the 
economic base of the company, 
and that it would not accept new 
state subsidies to keep open 
mines which it considers to be 
uneconomic. 

The company is satisfied that 
it will be around SKr 100m a 
year cheaper to import iron ore 
than keep the mines open. Some 


form of Government interven- 
tion, however, remains possible. 

SSAB management's plans 
are motivated by the view that 
the company must follow capac- 
ity and productivity initiatives 
in the EEC steel producers in 
order to remain competitive. 
The company exports about half 
of its output An urgent impera- 
tive is to increase its share of 
the Swedish and wider Nordic 
market 

Mr Wahlstrom says that while 
he accepts that restructuring 
will be difficult and painful, 
there can be no escaping real- 
ity. "Unless we pursue the 
coarse of action proposed in the 
plan, we will soon find 
ourselves in a situation where 
no job within SSAB will be 
safe.” 

SSAB has reported a 
SKr 893m pre-tax loss for 1986 
after making provision for the 
proposed cost-cutting measures. 
But it is estimated that if the 
restructuring plan takes effect 
it will raise the company’s pro- 
fitability by about SKr 500m a 
year. 

Meanwhile, Avesta and Sand- 
vik, special steel producers, 
have been subject to dumping 
allegations for their activities in. 
the US. A group of US special 
steel companies first filed an 
anti-dumping complaint against 
the two companies in October,- 
and last month a second allega- 
tion that Avesta and Sandvik's 
steel had been subsidised by 
the Swedish Government was 
upheld by the US Commerce De- 
partment. 

Sweden, which has been critic 
cised In the US for not com- 
plying with the administration's 
programme of voluntary export 
restraints, argues that exports 
have declined anyway because 
of fells in the dollar. 

Alan Pike 


to stand - aside from wage 
bargaining and Sweden's grow- 
ing public sector added to the 
number and range of trade 
anions and employers’ 
organisations involved in put- 
ting together the central agree- 
ments. 

But the decisive break came 
in 1383 in the industrial sector— 
where the principle of central- 
ised negotiations had begun— 
when the Engineering 
Employers' Association and 
Metatlbetaren, the Metal Work- 
ers Union, concluded a separate 
agreement outside the central 
structure. 

A second separate agreement 
in the engineering sector was 
reached in 1985 and, although 
the following year the industry 
returned to a centralised, 
national two-year agreement, 
the engineering employers have 
already made it clear that they 
will seek another separate 
agreement when negotiations 
begin at the end of this year. 

The system of centralised 
negotiations won the initial sup- 
port of employers in the SAF. 
the Swedish Employers' Con- 
federation, because they saw it 
as a means of concluding agree- 
ments covering the entire pri- 
vate sector relatively quickly 
while avoiding disputes. 

The LO, Sweden’s blue-collar 

trade union confederation. 

embraced the system as a means bargaining process, but leaves 
of furthering the policy of wage no doubt about its belief in the 
solidarity— compression of need to drive down the level of 

differentials— which it has pur- settlements, 
sued for many years. The Government has declared 

It is a system which, to some qq interventionist stance in the 
extent, had a natural growth puUic sector, making it clear 
point m Sweden s highly-trade that wage increases " unsup- 
un ionised labour market. Even ported by Improved productiv- 
Ihough closed toops-are ban- ity and efficiency will lefcd to 
ned, some 90 pdr 1 cent of all losses, 
employees— and 97 per cent in Employee participation has 
the industrial sector— belong to been a central part of Swedish 
trade unions. . . , . _ industrial relations since' the 

But it is apparent that some 1970c but the latest step along 
trade union members, as well as this road— wage earner Stands— 
employers, now feel that the has become a source of friction 
narrowing of differentials and between unions and employers, 
lack of flexibility produced by The LO had been calling for 
the centralised approach has the setting up of funds to prom- 
gone too far. This mew is shared ote employee-ownership since 
by a number of observers of ^75 and in 1983 parliament 
Swedish collective bargaining legislated for the introduction 
procedures. of five regional fends the follow- 

“ Strong reasons exist to imr year 
believe that egalitarian rather Eac „ hind has a nine-strong 
than efficiency considerations - - - - - 

have Influenced the Swedish 
wage formation process,” writes 
Anders Bjorklund of the Stock- 
holm-based Industrial Institute 
for Economic and Social 
■Research, in its latest yearbook. 

•* Most of the wage increases 
have - been determined in cen- 
tral negotiations between the 
unions and the employers 
federations. In these negotia- 
tions unions have struggled 
hard to realise one of the aims 


Wage drift is a major fector in 
Swedish collective bargaining. 
Central negotiations have not 
succeeded in restraining real 
wage increases close to the 
level agreed under the national 
recommendations. Between 
1967 and 1985 wage drift 
accounted for some 45 per c*nt 
of actual wage increases. 

There is agreement among 
employers and union leaders 
that Che current level of real 
wage increases, running at 
around 7 per cent, is too nigh. 
The Government, in its efforts to 
bring down the inflation rate, 
will be looking for maximum 
settlements of 3 per cent In the 
coming wage round. 

There are no easy answers on 
how to reach this goal. It does 
not necessarily mean the end of 

centralised negotiations— many 
employers and trade unionists 
would like to see retained a 
reformed version of rather 
looser national agreements 
than those in the past. 

But Mr Lars-Gunnar Albage, 
deputy director-general and 
chief negotiator for the SAF, 
doubts whether there will be 
any kind of national framework 
agreement this year. ** If we are 
aiming at a low, 3 per cent target 

I think it will have to be negoti- 
ated at union-industry level." 

The Government remains 
formally outside the wage 


board of directors including 
five trade unionists. They are 
financed by a 02 per cent 
payroll tax and 20 per cent of 
company profits above a certain 
level, ana are intended to be 
used to buy shares in Swedish 
companies. 

Although the funds have so far 
had little direct impact, they 
have drawn stronger criticism 
from employers than is normal 
in Sweden’s traditionally 
temperate industrial relations 
of the solldaristic wage policy, climate. An increasing number 
namely general reduction of of private sector companies are 


wage differentials between 
industries, firms and indi- 
viduals. 

“ Even though the additional 
wage drift might have been 
more influenced by traditional 
market forces, the basic hypoth- 
esis remains that the flexibility 
of the Swedish labour market 
has deteriorated.” 


introducing their own profit- 
sharing schemes, but these 
attract criticism from union 
leaders for being an attempt to 
reach employees outside the 
established, and in Sweden very 
extensive, trade union struc- 
ture. 

Alan Pika 


Stockholm 


Close-knit business community 


SWEDES SOMETIMES contrast 
the capital Stockholm with 
Gothenburg, the second largest 
city, by pointing out that 
whereas Gothenburg openly 
feces west. Stockholm looks 
east— sheltered on its 
archipelago at the point where 
Lake M&laren meets the Baltic. 

That is not to say that Stock- 
holmers shun American or 
Western cultural influences— in 
fact the Swedes as a general 
rule seem eager to lap these 
up— but the city does still retain 
a certain insularity and the 
sheltered atmosphere of a small 
town. 

Shop windows generally lack 
imaginative displays and In 
some cases are almost Eastern 
European in appearance. Its 
business community is closely- 
knit and the same names who 
went to school and university 
together invariably crop up 
later in the same board room 
photographs. 

In Sweden, companies are 
commonly married to 
geographical areas. Thus the 
name of Gothenburg, the second 
largest city in Sweden, is inex- 
tricably linked with that of the 
automobile giant Volvo, as well 
as with SKF, the world’s leading 
roller bearing manufacturer, 
and Gtftabanken, the country's 


fourth largest publicly-quoted 
bank. 

Saab-Scania, the aerospace 
and automotive group, has its 
home in Link&ping, while Asea, 
the electrical engineering 
group, is based in V&ster&s to 
the west of Stockholm, and 
Pharmacia, the biotechnology 
and pharmaceuticals group, is 
based In the university town of 
Uppsala where it can tap the 
ideas of local scientists. 

The weapons industry — or 
more specifically, Bofors — is 
centred In Karls koga, while the 
construction giant Skanska is 
based in Malmo in southern 
Sweden. 

Many of the big names in 
industry made their homes out- 
side the capital, Stockholm. By 
and large, they are content to 
stay that way, as they are crucial 
employers in their particular 
regions. Yet more and more 
have found that it is necessary 
to keep an office— or establish 
some sort of presence— in the 
capital. 

Stockholm, after all. Is the 
administrative hub of Sweden, 
and home to more than half the 
country's businesses including 
names like Electrolux, the 
white goods manufacturer. 
Ericsson, the telecommunica- 
tions and electronics group, and 


Skandia, the leading Insurer. 

It is also— as one would 
expect— the heart of Sweden's 
financial world though interes- 
tingly, of all the foreign banks 
which gained entry to toe Swed- 
ish market, the Norwegian bank 
Den Norske Creditbank, 

decided to set up in Gothenburg 
rather than Stockholm, chiefly 
so that it could reduce its start- 
up-costs and concentrate on 
regional business. 

The cost of Hiring qualified 
staff and renting office space 
Is considerably cheaper in 
Gothenburg than in Stockholm. 
The recent blossoming of the 
Swedish financial markets 
means that qualified and 
experienced staff are in short 
supply and swiftly headhunted. 

Rents in central Stockholm 
have increased sharply over the 
last year and real estate prices 
rose by up to 30 per cent in 1986. 
Demand for housing has 
surged— swelled ■ by young 
people and immigrants who 
mostly come from Iran, Iraq, 
Yugoslavia, Turkey. Poland,- 
Rumania, Ethiopia and Chile. 
More than 120,000 people are on 
toe waiting lists for accommoda- 
tion. 

It is a characteristic of most 
capital cities that the young 
flock there In search of jobs and 


excitement and Stockholm is no 
exception. Unemployment is 
lower than -in the rest of- the 
country, while excitement for 
Stockholm's yuppies often 
means queueing outside tbe 
“ in " places in temperatures of 
-30 deg C. Stockholm has 
become the sort of place where 
newspapers can safely list the 
favourite eating places for cer- 
tain sets of young professionals. 

Over the last five years, the 
population of the Stockholm 
area increased by 50,000 due to 
immigrants and people moving 
from other parts of the country. 
Between 1990 and 2020, the 
area's population is expected to 
increase by 260,000 to 1.875m. By 
comparison, toe total popula- 
tion of Sweden is just over 8m. 

About 20 per cent of the 
population in Stockholm is 
involved in industry, compared, 
with 30 per cent in fixe rest of 
the country, and 55 per cent ofj 
the Stockholm population is in 
toe service sector, compared, 
with 47 per cent in the rest ofj 
Sweden. In future, the new jobs 
are likely to be in the service 
and high-technology fields, with 
the latter concentrated in the 
Kista area— which is Stock- 
holm’s version of Silicon Valley. 

Sara Webb 


MANY of Sweden'* i*r***t 
com panic* have •“ ‘JSJ 

is SKF, the worid’a leading 
bearing manufacturer aot J 
Sweden** mort international 

industrial company, 

Almost ait SKF** 98 per 
cent— are ontalde Sweden and 
so hi 88 per cent of tu produc- 
tion. On toe basu of a coiwriou* 
stand -and- fight policy, the com- 
pany has held its market share 
In the ft ce of inwnaUyiRK inter- 
national competition and la cur- 
rently developing » nrategy » 
take more of the US market. 

Until the end of toe M»*, 
SKF had a rang* of subsidiaries 
■round Europe all serving their 
own domestic markets. Since 
then a different structure has 
been Introduced, bared on a 
policy decision to treat Europe 
as a single market, 

Each subsidiary now has 
responsibility for producing 
particular products which are 
marketed throughout Europe, 
The same decision to eliminate 
duplication has led to 
responsibility for various 
aspects of research and 
development . also being 
devolved to individual national 
companies. 

In addition, each company 
manufactures some of SKfi 
own production machinery— the 
company makes almost ati its 
own machines, which are not 
sold on the open market, 
because managers say they arc 
better than the ones they would 
otherwise have to buy. 

Three new business areas— 
SKF Bearing Industries. SKF 
Bearing Services and SKF 
Speciality Bearings— group 
similar activities on s 
worldwide basis. 

" Efforts by Japanese bearings 
manufacturers to penetrate 
SKF*s traditional markets led to 
years of low profitability In the 
early 2970s. But the company 
says its decision not to yield to 
competition in any area of its 
activities has been vindicated 
by SKFs position today. 

Growth in the bearings mar- 
ket is currently slow— perhaps 2 
per cent a year— and price com- 
petition remains strong, 
although sales in the important 
car market have been improving 
recently. 

SKF group profit for the first 
quarter of this year was SKr 380, 
compared with SKr 350m in the 
same period of 1986. Group 
sales rose from SKr4.503bn to 
SKri,9bta. Last year group capi- 
tal expenditure, excluding 
acquisitions, rose above SKrlbn 
for the first time. 

In the Increasingly competi- 
tive market atmosphere, there 
has been a growing determina- 
tion within SKF to work along- 
side individual customers to toe 
closest possible extent In the 
case of a customer such as a 
motor manufacture, that can be 
a process of close involvement 
in new model development las- 
ting several years. 

Allied to this is a heavy con- 
centration on research and 
development— SKF* current 
research investment amounts to 
about 2 per cent of sales and 
this is being increased. The 
company has embarked on a 
programme to recruit at least 
250 graduates worldwide for 
each of the next six to eight 
years to strengthen its skill base 
and proride it with senior man- 
agement for the fixture. 

SKF management under M 
Mauritz Sahlin, managing dire- 
ctor. has a determined policy of 
ga in i n g the most dominant 
possible position in all the 
group's central market activi- 
ties. To this end, a drive is 
under way to expand SKF in the 
US market which, compared 
with Europe, remains highly 
fragmented— it takes 18 bear- 
ings companies to cover 60 per 
cent of tbe market, with another 
4Q fighting for toe rest. 

A. P. 


A Waterfront Jewel 
In Old Town Stockholm 

Unique in its personal profile bringing You toe persona! service 
and consideration which only a small hotel can offer 

115 rooms - Suites - De Luxe rooms - Restaurants - Barf 
Pool and Sauna - Pianobar - Conference facilities 
Reservations 

Trustoouse Forte Holds Worldwide London (44) 01-567 3444 



easen 

Skeppsbwi 12-14 S-I1J 30 Stockholm, Sweden 
Phone 08-22 32 60 - Trice 17494 Rebec S 


* EtQf H ANSSON - TH£~ GlJQBETRADER** 

The international trading house active 
in pulp, paper, machinery, chemicals, 
timber, building material, 
textiles, foodstuffs, 
steel, consumer goods. 



.v 







/ 


11 


Financial Times Fridav May 22 1987 



."MMUunr 

— .SaaBeoy 


rtrffT ^ SST ***E?*£2» js&jw x^y <*>*><«*» 

mamurt*) m * -««p ’ «k»ttn«M.MMW 

• iS"S^Satt Bg^igas 33BSSTrS^. 

^5B5 3TSgS3 U^. jas ag sssr^^Szsz* „ L , 

^ s»sa».*geg5a - .aasaSg-aSBS s-sES. 


.«■-> i ■ .jr — « — « a»». w uw»«»3n> i mht wiwLjuw aa i 

jfew guide for old k 8 ® 

* W - U 'te«e«Wta»*» A*W*«et** 

ggSB BSaSZlSiSSi 

«HWI £#»«««» «5*.ata£»* *B 
B^tatKooioav ttes^<K*M*t Bwaaos 



. ,lMMMIhMK»*».X < «4w«n 
tecotMentwwt o*®»«M»i«wA* 
^gkMMMattNAMamMit 
m^inmftKw.ataBMnd 
; )omw) 

Hm m ot bumh B 





.IsWOSnin _ 

«nWMi»< W ta < ao™jnr >*m rny^ur* ytt tMoaw fan** eMrac. 
«*wo «toa (kmbb mjo#n^d***MiP*«*n 
pWtmXtnvm imunt^ owwmtuwtMKttOo 
jJsrawwaaiBwswaKa tsaeJa. 

LMauaoribA> ^Bott'«wMMn AcwtaaqacAm 


' <*fenew'fcfiB 
«m 5t«s«\P^« 


WOSMtiW**** 

»WO»)un** 

aneaifovwn 

■Mw»<miiRM 




~tseo6. 


ferns ahmh** 

«m*OMNh«W|(R 


,■ -, assay csrgr^- g***— r ssagg 

i-v rSiSl” *:?**** j»yi - ■ jf in wi ^ ftwma .osfrdMp ama»Xtafca>aa 

; wSStMM^SI 2®22j@®w? 

■v mssssr ar— ssrjssf &r*^“ 

■ T-aweggS” ^gy****» «w**5»og?« tto *MfoM *>m****- 

J®kk» osfcoxaw ooaaw<afajj«B» 


New financial 
, watchdog for a 
^^smaM investor ? 

’6- 'anw tT XnyhoaAaj. Jtoe3k>Ione«j laaatsiaai 


MAai^Knkfl «Um<Anom «» ta«>»«*atta |r ItlSl^i n w*jfc \*e&K» WMiMVtgm* 

.Bmn«iH&eM oonraoswaym Mrttfw « hmmCQ w l flliirr **' 

Jnjneumouwsco \uo«tttai»nm ofemtnAsnK'to 
^owaVmAwaot aawtfucnem do** . 

\ f^w» eMc8ica. gwac^&nna wa ARWiw 
RmvacoifcAHt <*■»*«*«*•***' Bft”** 1 *^* 
jocuM*™** «¥»*»* ^ ^ 

.s^M^woMletw} TbfrasMCK9»nen«Qi*m 

t ** &l *t 3 «* > "* 

TOaa^aaosw.cowairf 


available? 


/,.• JS ftfM t&ilbaiik ' A**m4a>HiA MBoeroocto^&ij? $&&&&*(**&« agBMa& aacarrl 

; : •: 3Sg»y fiSKKSr aasag^gg 

£ -- • — — »*» — . - m L ,?r^rf gSggffy,!? : . woawi«««o«***w .«**, 

^ntaCSTa? S5«S^5SS tuffl® onto tow«, -« w-a>» 5oaaj^3 — _ 


fesw$i«&'A toa»>A 
asOuacmlKwfl ^toumm uhoiw. 

BMaampmwi *«rigMnuA ^ww-Vw**** ' 

UWWOSKft- »wc«itOMluau*» «A^»rtmx«lA 

<*££££ -\ 

333C& er™— • .Ssssri . 

JSS5S1=S55K 32KS2S «2SSSS ttSUESi '. 

ssf^ES s^jss'^s SS1S£S Km^zZ ******* a “ss*”" »« ■■■* « * tssrs ; 

veuBn«A»<« uwctea amw^n. owflftacndhi w«t«te» Omflkt* Wnamt* mSBUSrn^ 'muunomn*** 

T)~frm«M*3p _5wtawiiawart - Arivoa oftito cSAsq cnx4k>*x*Xi oAMQ^swSSdL ^hm ~in»tr *»e« un*V*«»a 

<w*» -' ■■-' i Kewps^B^ ^ VT> * v ~^ V i^a ^ «wy«»»«a«/n*^- 

<fefrm «4« mat ®*wRvnyora»l» RnMMmnm 


-a^7 - ^^wihj ac 


MiSMCfftCt 

cant 

satssfisftM 


S?SS!S« flw ¥* ^/XT *" wtw «>•<»«« an «wsn3«»on» 
. . .£*2* towdn ^*jS>Yic«*mcao PQ — i (^w«»iil«aoiw 

OiwawouonJr ****•“■ fTfliprti rn cJBBErM^Mn ooovrj cnJOn«M«n«m01 


flw>Q«aoztc »]'k m jt ,, 
niSuni aaB*anvJ^ 

s aoanamikM ^ 


OaoiVKS, o'«Aor» 

m»w9)M «soO«n,naiUtii 
SmwftvaiuQ otx^m^ktctunca 
naoa. «BtaiJBoj)n ttoti»afcre»» 

* %A«un» ote*>oa»qw>» AtMfMir. 
nawStfeMauu wsowsicnVtt fQBcnen1tsB«nl 
oactj i»c»'i5ww» *»'** uuiuB nVMunpa 

t*m*siu iioui^jfls. RxiutelvnonM «na neOuaepo . 
boaimt»««.-i9>ua ».•«>« unocttnlk- <roois tnwsa'joa 

(mA»> dkn^nonari 'fdUtR.jn.c Oiaaa&otaacft«s 
t&agxsaakr*wman j v% .,j 



, I (tesiMAmA %a«moB«aoacjte w»«Wn«ift<ft 

;V\ VWWoaoWMW «MW«nunaw^ 

»H flttooWWroRctoi t'Kwnywan*# 

t\> ^g***®**^ ^Pos^jscaniai ^2£™2SL 

; k !2t‘2f* , ^9V«w* »o»«>u*»«jw.a* 

■ » c *‘ Sfi «»^«»Vro 

tsar-sa sffiSSK*” 


■1-k. 


^ *"** ■ — : i4 i>‘.«<v :■•-«'.■ - -: “'•• »«<•' Le wi,- 


• hi « > 4 Mrr . t 4 t dl ^ Jifl v.^liu>, xim 


■* WK6» ii > 




TODAY, THERE’S ONE BRITISH BANK THAT STANDS OUT 

WHEN IT COMES TO INNOVATION. 

We think that before a bank is invited 
to advise senior management on cor- 
porate finance, the bank itself should 
answer a few questions. After all, success 
counts in a bank too. 

Since 1969, when we were first est- 
ablished in London, we have pioneered 
many firsts. Our coiporate approach, cus- 
tomer service and innovation, has proved 
itself to be so successful that we have 
grown to be Britain's eleventh largest bank. 

Today we are a substantial funding 
source both here and internationally 
through our 17 offices in key world fin- 
ancial centres. 

Now, as a company quoted on the 
London Stock Exchange^ we never forget 
that our roots are deeply embedded in per- 
sonal service. You won't find yards of red 
tape with us. Our people have the attitude 

The art of British banking Scandinavian style. 


to match their expertise. And that means 
the flexibility to work alongside clients in 
creating original solutions. 

So if your company is seeking an in- 
novative approach to corporate restruct- 
uring, buy-outs, mergers, acquisitions, 
divestments, setting up of subsidiaries, or 
ary other area of corporate finance call 
Michael Burt, Executive Director, 
tel: 01-236 6090 ext. 264. 



Scandinavian Bank Group pic, Scandinavian House, 2-6 Cannon Street, London EC4M 6XX. Tel: 01-236 6090 Telex: 889093 Fax: 01-248 6612 

International Offices: Bahrain, Bermuda. Cayman Islands, Geneva, Hong Kong, London, Los Angeles, Madrid, Melbourne, Milan, Monaco, New Ybrk, Sao Paulo, Singapore, Sydney, Tokyo, Zurich 





vin 


Financial Times Friday May 33 1387 


*M ss ^En 

m 


R) 


FINANCI AL TIMES. 
CONFERENCES ,;. ... »||| 





INTERNATIONAL 
COLLABORATION 
IN AEROSPACE 

- Problems, Progress 
& Prospects 

Paris 9 & 10 June, 1987 

The 1987 FT Aerospace conference will take place 
in Paris on 9 & 10 June immediately preceding the 
International Air Show. As the costs and complexity 
of modem military and civil aerospace ventures rise, 
international collaboration in the aerospace Industry 
has been expanding rapidly. This conference will 
examine the difficulties involved in establishing major 
collaborative ventures and the benefits that such 
ventures can bring to their participants, ft will also 
examine current ventures that are underway and 
discuss future developments. The opening address 
will be given by M. Jacques Benichou, President of 
GIFAS. Other speakers include: 


AER OSPACE 
1987^H 


□ Please send me further 

details of trie 

FT AEROSPACE 
CONFERENCE 


To: Financial Times Conference Organisation, 
Minster House, Arthur Street, 

London EC4R 9 AX. 

Tel: 01-621 1355 TUc 27347 FTCONF G 
Telefax: 01-623 8614 


I 


Name. 


Position. 


Company /Organisation . 


M. Jean Pierson 

Airbus Industrie 

M. Jacques Plenier 

Aerospatiale 

Mr James T Johnson 

Boeing Commercial Airplane 
Company 

Mr Ozires Silva 

EMBRAER 

Mr Hans- Joachim 
Klapperich 

Panaria Aircraft GmbH 

Mr Lee Kapor 

General Electric 


Mr Frans Swarttouw 

Fokker 

MrGerrieWiliox 

Eurofighter Jagdflugzeug GmbH 

Mr Lou F Harrington 

McDonnell Douglas 

Mr JohnDWragg 

Rolls-Royce pic 

M. Jean Soliier 

SNECMA 

DrRaffaelloTeti 

Gruppo Agusta 


Address- 


Country. 
Tel 


Tlx. 


.Telefax. 


The language of the conference will be English/French and 
simultaneous translation will be provided. 


A FINANCIAL TIMES CONFERENCE 

in association with 

AIR & COSMOS 


A FINANCI ALTIMES SURVEY 



1 JULY 1987 

The Financial Times proposes to publish a survey on Norway on I 
July 1987. Norway is experiencing a period of economic and pouticai 
turmoil as it seeks to come to grips with its worst economic aisisior 
many years. The minority Labour Government^ led by Mrs viro 
Harlem Brundtland has managed to hold on to office for more than a 
year thanks to the disarray among the non-socialist parties, but 3 
further period of political instability is inevitable with two-and-a-half 
years before the next General Election and the absence of a stable 
majority in the Storting. 

The Survey will consider developments in Norwegian politics and 
the economy, and will provide a review of recent events in industry 
and the financial markets, as well as covering: 


★ Foreign Polity and Defence 

★ Politics 

★ Economy 

★ Trade 

★ Stock Market 


★ Oil and Gas 

★ Industry 

★ Key Sectors of the Economy 
it Banks and Monetary Policy 


For more information about advertising in the Norway Survey 
and a copy of the synopsis, contact: 


Chris Scfaaanning 
Financial Times 
Bracken House 
10 Cannon Street 
London EC4P 4BY 
Teh 01-248 8000 ext 3699 
Telex: 885033 F1NTIM G 


or Bruno Munkftafe 

T. Klockares Gala 14 
S-1I330 Stockholm 
Sweden 

Teh (08) 33 49 10 
Telex: 10838 BRITCOM S 


FINANCIAL TIMES 

EUROPE'S BUSINESS NEWSPAPER 

LONDON - FRANKFURT - NEW YORK 


Time is your most precious resource 
Faclmaster will help you make the most of it 


Do you.. 

□ spend too much time in unproductive 
meetings? 

□ try to cany too much information in your 
head? 

□ always seem to be surrounded by notes and 
unrelated scraps of paper? 

□ find it difficult to delegate tasks which you 
feel you can complete better and faster 
yourself? 

□ find yourself constantly dealing with minor 
queries from others? 

□ feel lost" without your secretary? 

□ put off potentially difficult tasks because die 
information you need is not atyour 
fingertips? 

□ find it difficult to plan holidays well in 
advance? 

□ feel that overseas trips are less productive 
than they should be? 

D not enjoy your job to the fullest? 

These are all symptoms of inadequate 
personal organisation and task management 
resulting in inefficiency, poor performance and 
lessened job satisfaction. 

If only half of them apply to your workstyie 
-you need Factm aster. 

What is Factmastei? 

Factmasterhas two primary units: 

□ A portable loose-leaf information system 
and a desktop Databox, enabling you, 
wherever you are, quickly to record and 
retrieve vital data. 

□ A task management programme to bring 
yourkey areas of responsibility into focus. 

You will receive Factm aster's comprehensive 
documentation enabling you to progress all . 
your operational activities, for example: 

Diaiy (diary pages, calendaisjorwanl planners) 
Task Management (work load charts, priority 
indexes, task overviews, action plans, 
timetables) 

Personal Investments (securities, insurance 
policies, capital gains). 



Working with Factmaster disciplines your 
approach to life, encouraging you to think 
ahead by keepingyour long-term objectives 
dearly in mind So as well as improving your 
own performance, Factmaster will help you 
become a better manager. Those around you 
will respond more positively towards their own 
tasks and objectives when they see the example 
you set 

An investment for life 

Factm aster's contents come complete, and 
will last for a whole year. You decide when you 
wish to start by selecting your own 
commencing date for die page-a-day 
diary section. After twelve 
months you simply purchase 
a new Databox containing 
all the refill sheets you 
need for one year. 

As you would 
expect from 
the FT, not 
only is Factmaster 
an invaluable business aid, it 
is stylish and elegant in its own right 

Available in two versions, only die finest 
materials have been used throughout If you 
demand the best you will choose the 
sumptuous black leather binder, with real 
gold-plated rings. With two full size pockets 
on the front cover for currency or notes, this 
binder also has a further pocket on the back 
cover with two useful multi-credit card inserts. 

Our alternative binder is durable, travel 
proof and no less attractive. It is also black, has 
the look and feel of high quality soft leather, 
sihrernickel rings and two pockets. 

And, the Databox is an impressive asset to 
yourdesk. 

Personalised with your initials 

Fora modest additional cost your 
Factmaster can be inscribed with initials in rich 
gold blocking; 


What Factmaster contains 


BINDER CONTENTS 


The following sheets are ptc-taumed into the 
binder. Capital letters indicate tabular headings for 
maJnscctJons— 

How rn grt the roost from your FT Factmaster 
Personal Memoranda -PcnonalTdcphone 
Numbers 

Motor Infor m ation- Other Infor ma tion 
DIARY 

BustocgD atesWrc ro e M ibq. Personal Dates to 

Calendars J986H 987/1988/1989. Kuwaiti 
Planner. 

Staff Holidays 
NOTES. IDEAS 
MAPS 

Landon Undergitwnd-Mlkage Chart Britain, 
Inter- Gty Routes 

London West End— Gty of London. Great Britain 
Route Planner 

TASK MANAGEMENT 
User Guide toTaskManagement Work load 
dun 

Task Priority Index. Red tab -urgent and 
immediate 

Tabs- numbered 1-9. Each contains.— 

Task Overview. Major Sub-Task, Action Plan, 
Timetable 

ADDRESSES/TELEPHONE 
IK Dialling InfaimnloiklnienMiaixdDbDing 
k Codes 

L WoridTlme. Resnorara/EntcKainmcnt. A-Z index 
5 BLANK TABS 

Sheet of labels to crate own sections 
Business Card Holden. ‘Absolute Essentbb/WaHet 
Binder Dimensions: iSSmax I35mmx40mm 

DATABOX CONTENTS 

Tbc Mowing sheets offer an atenativcsdectloti 

to. ort fapHcatcsof. those in the binder. Capital 
***** Indicate tabular hearings far (train sections, 

diary 

Forward Planners. Staff Holidays. Diary hga 


NOTES- IDEAS 
MAPS 

14 Internationa! Gty Centre Street Plans 
TASK MANAGEMENT 
Workload Chans. Priority Indexes. Task 
Overviews 

Major Sub-Task, Action Plans; Timetables 

ADDRESSES/TELEPHONE 

Badness Gifts. Personal Gifts. Business Christmas 

Cards 

Penonal Christmas Cards; Addressu/Tckphonc 

ANALYSIS 

Analysts. Gnphs/Metric. Graphs/fnchcs. 


BUSINESS CONTACTS 
PRIVATE INVESTMENTS 

Shares. Overseas Investments. Reaxdsaf 

Insurances. Summaries 

MOTOR 

Motor Running Expenses 
BUSINESS EXPENSES 
STAFF 

Staff Records 

ITINERARY, ROUTE PLANNER 
TRAVEL CHECKLIST 
^P^^roieOwddtjts-ArrivdCheckltsts 

Databox Dimensions: ll&anx IUbuxIIOmb 

Tor further information 
^^PW^f^KAhoponOl-fiM 111 *. 
RojndalTimes Business lofonnitk*. 
MtoWer Ho«p Arthur Street London EC4R9AX 
Tbt 8814734 BUSPUBG 


FINANCIAL TIMES 



Making the most of your time 


ORDER FORM 


Customer Service Dept, FT Business Information Ltd, Minster House. Arthur 
Street, London EC4R 9AX. TeIOl-623 ran Telex 8B 1 4734 BUSPUBG 
Please send me the following Factm as te rs (indicate quantity in boxes)- - 

□ KS£«.75> — □ 


Signature If ywblUtagiddrw* differs from 

Deh very Address 


•581/2231 


I527JMS3 


Leather (£143.75) LJ Leather (£ 85 . 25 ) 

□ Coldblocking initials 

(£l.72) maximum of 4. I I I I I 
Method* of Payment 

My cheque for [i lfacndosed made payable to 

1 I F T Business Information Ltd 

IWdcbltmyQ^ □[Tjjjj] □ DS' 

Wc will automatically send you a VAT receipt 
(all prices include VAT, postage and packing). 

Ctrd Number Expiry Date 


Name. 


Position 

Company, 
Address __ 


Postcode. 

Telephone 

(Deliveiy within 28 days). 


TheFWfKUlTln*, 

GUARANTEE 

cttwnwi of the 
FKiniMtfmwhMtKBt 
downed 4ndpr***<dMtlM 
nwhnnwtdurit 
Huwir. il urn impcaka 
yw ftdwn praAKt dmntt 
nu>thiwu|«uf nHMhM 
intnrwayweMuv^M 
Kiwynunuisl, 

ntwiditiKlHdb^ 
ritim iwtrtjwuidjjMlK**) 
IWMHMMHNiiiniadunMd 
whtn [idiHMmniW. 
ItffITl thdCMBQlAMwn 

KaMtiKbd'itKkl 


J Diary Start Date , 

I wish my 1 2 moo th diary section to start on the I st day oL 




- I 



/ 






DEREHAM, NORFOLK 

(0362)5353- a 


29 


0 


SECTION n - COMPANIES AND MARKETS 

FINANCIAL TIMES 

Friday May 22 1987 


^NOMURA 


FOR INTEGRATED 
FINANCIAL SERVICES 

Innovative * Flexible* Global 

Noama Hoom, M Mocmmh Street. Condon EC3R tAf. 01-20 Mil 


t. 


I,;. 


■ -> 


RENAULT SAYS SALE OF STAKE EXPECTED SOON 

Boost for AMC deal 


BY PAUL BETIS IN PARS 

THE SALE of Renault's 46 per cent 
stake in American Motors Corpora- 
tion (AMC) to Chrysler is expected 
to be completed in August, the 
French stateowned car group said 
yesterday. 

Renault also indicated th»t the 
main obstacles holding bade the 
agreement had now been cleared 
after the approval by the Chrysler, 
AMC and Renault boards during 
the last 24 hours of Chrysler’s re- 
vised buyout proposals to AMCTs 
gmnii shareholders. 

However, the agreement must 
still be ratified by AMC sharehol- 
ders, as well as secure approval, of 
the French, US and Canadian au- 
thorities since AMC owns a major 
new. plant in Ontario. Renault ex- 
pects this will take until the end of 
July or early August Until then, the 
French state groap will retain man- 
agement control of AMC which will 
then be handed over to Chrysler. 
The GS car maker is widely expect- 
ed to drop the name AMC when it 
finally takes the company over dur- 
ing the course of the summer. 

Renault announced last March 
that it was withdrawing from the 
US market after Spring a tetty of 
intent with Chrysler to sell its stake 


in AMC to die Detroit car maker. 
However, the agreement was subse- 
quently held up over Chrysler’s 
buyout ofEbr to AMC man share- 
holders. Chrysler initially: o ffe red 
S4 a share to these investors in. a to- 
tal package worth 5757m. This was 
rejected by the AMC board, which 
has now accepted a revised Chrys- 
ler offer of $4}j a share or a total of 
5830m. 

Renault, ho w e ver , indicated yes- 
terday that the main points of its fi- 
nancial agreement with Chrysler 
over the sale of its 48 per cent stake 
in AMC had not been altered. Un- 
der this agreement Renault is ex- 
pected to be paid between S217m 
and S567m few its shares and bonds 
in AMC under a complex five-year 
formula. Moreover, Renault expects 
to earn between S85m and S2Q0m in 
additional royalties from Chrysler 
on the sale of the intermediate giw» 
saloon known as the Premier, 
which AMC is launching on the 
American market this year. At the 
same time, Renault expects to ex- 
port from France between S3bn and 
S5hn worth of components to Chrys- 
ler over the five-year period of the 
agreement 

Chrysler is due to pay Renault 


5200m for the French groupTs bonds 
in AMC when the final agreement 
is signed this summer, either in 
cash or in the form of 10-year bonds 

at (Snyder's option. It will also re- 
ceive Jl7m from Chrysler for- its 
- stake in American Motors Finan- 
cial Corp. Hie amount Renault will 
ultimately receive fur its AMC 
shares will be based on the level of 
Jeep and Pr emier sales from the 
beginning of this year to the end of 
199L This involves a sum of up to 
S350m at current prices. 

Renault, which sank S650m in its 
AMC Investment, confirmed yester- 
day that AMC planned to halt in the 
next few weeks production of the 
Alliance, the American version of 
the Renault 9, mH that it no l onger 
intended to apart to the US its Al- 
pine GTA sports car. H o w ev er, un- 
der the Chrysler agreement, the 
Medaffioa, the American version of 
the Renault 21 budlt in France, will 
continue to be sold in the US, hat 
without any fixed volume obliga- 
tions on the part of Chrysler. 

Chrysler, however, has agreed to 
sell at least 300,000 new Premiers 
built in. the fttnytiim plant for 
which it will pay royalties to the 
French car group.' 


BCI to 
spin off 
subsidiary 

By David Owen In Chicago 

BCI HOLDINGS, which last year 
took private Beatrice Companies, 
the food and consumer products 
conglomerate, ina S&2bn leveraged 

. buyout, is to spfit its sofe subsidiary 
into two companies vfe an Initial 
public offering tot its remaining 
non-food businesses aqd some spe- 
cialty food Hues.. 

The offering if expected to com- 
prise ^m shittes at op to SIS a 
share,' giving ft aatndJcated value 
of up to 5648m. • 

The new public company, to be 
called E-H Holdings, will consist of 
15 operating companies, including 
Stiffel Lamps. Samsonite luggage 
and the Culligan water softener 
business. BCI estimates that the 
units concerned accounted for 
about 20 per cent of the fair market 
value of the company assets at the 
end of its fiscal year in February. 

E-U will be headed by BCI chair- 
man, Mr Donald Kelly, a former 
chairman of Esmnrk before its ac- 
quisition by Beatrice in 1984 and a 
deal maker of some repute. Mr Kel- 
ly is expected to have a Slbn acqui- 
sitions war chest at bis disposal. 

The private food firm, which in- 
cludes Hunt-Wesson Foods, Eckrich 
and Swift meals and Tropicana 
fruit juice, will be beaded by Bear 
trice presklent Mr Frederick 
Bentechler. 

Since last April's leveraged buy 
out. BCI has sold sub sidiarie s worth 
$3.4 bn to reduce debt 

More International 
company news on 
Pages 30, 33, 34 and 49 


Electrolux advances 
5% to SKr 624m 


BY SARA WEBB IN STOCKHOLM 


ELECTROLUX of Sweden, the 
world’s fewtting household appli- 
ances group, has reported a 5 per 
cent increase in profits even, though 
sales surged 71 per cent in the first 

quarter. 

Profits (after fa«nriai items) 
rose to SKr 024m ($100m) against 
SKr 593m in the first quarter of 
1988. Both earnings and sales wee 
adversely affected by the further 
decline in the dollar, Electrolux 
said. 

Sales totalled SKri&CTto com* 
pared with SKr9J2bnthe previous 
year and wore boosted by Electro-, 
lux's recent acquisitions, including 
White Consolidated Industries, Za- 
nnssi, Poulah/Weed Eater and Got- 


thard Nilsson. 

Mr Anders Scharp, Electrolux 
chief e x ec utiv e, said that Zanussfs 
earnings, productivity and margins 
continue to show improvements 
and that the Italian white goods 

wmi fo ctam w mw mpvtn H to jam 

a return on a par with the group av- 
erage by the end of 1987. Electrolux 
is investing SKr IJftm in two pro- 
duction plants - for refrigerators 
and freezers, and for washing ma- 
chines ip tetter to increase pro- 
duction capacity. 

Production facilities at White 
Consolidated are being resta te - 
tared. and earnings are expected to 
reach 5150m, up 5100m on the 1985 
figures, by 1988. 


Mitel near 
achieving 
break-even 
level 

By Bernard Simon In Toronto 

MITEL, the loss-making Canadian 

ker acquired by British Telecom 
(BT) fest year, has approached 
break-even point in operations but 
continues to pay heavily for past 

Losses before taxes and extraor- 
dinary items fell to CSLSm ($11 5m) 
in the 12 months to March 27, from 
CS8L5m a year earlier. But net los- 
ses for the year were C$80fim, or 
C$1.09 a share, compared with 
C$180 An, or C$412, in the fiscal 
year 1986. Revenues rose from 
C54ia2m to CS453.4ZZL 
Extraordinary and nrmcnal 
ses, stemming mainly from a strin- 
gent rationalisation of manufactu- 
ring capacity and other houseclean- 
mg measures since the BT take- 
over, were virtually unchanged at 
CSSSJhn. 

Mr Anthony G riffiths , rhfof ex- 
ecutive officer, said that the posi- 
tive impact of recent changes was 
reflected in a drop in sales costs 
from 85 per cent of sales to 513 per 
emit A 25 per cent fall in invento- 
ries contributed to a quadrupling 
in naieb finer before fmnnnrng Ain 
ges to C$421m. 

Last year's revenue increase was 
due largely to strong sates of the di- 
gital SX-200D PBX system, as well 
as improved demand for semicon- 
ductors and highur shipments of 
the large SX-2000 office switch. 

Mr Griffiths sounded a cautious 
note by pointing out that sales since 
the end of the fiscal year were be- 
low expectations. He ascribed the 
setback to changes in product mix 
and a temporary difficulty in. satis- 
fying growing demands for new 
products. 

Mrtal. which expanded rapidly in 
the 1970s and early 1980s under its 
previous flamboyant mawagntwt*nt 
has recently dosed plants in Puerto 
Rico and Hong Kong and plans to 
shut an Ontario factory later this 
year. The company's work fo rce has., 
been trimmed by more than 1,000 in " 
the past two years. 


Telefonica to launch 
risk capital venture 


BY DAVID WHITE. IN MADRID 

COMPAN1A TELEFONICA Nation- 
al de Espafia, the partly state- 
owned Spanish telephone monopo- 
ly, yesterday announced plans to 
launch a risk capital venture bring- 
ing in private-sector shareholders 
and aimed at developing advanced- 
technology industries. 

Mr Lois Sol ana, chairman, said 
the venture would start with a low 
initial capital but that Telefonica 
would seek participation from its 
bankers and that the company 
would probably be floated on the 
stock market 

The plan is part of Telefonica’s 
fwffipww* policy following a period 
of financial rpsfa-ncfairing. Mr Sola- 


na said the company was in a posi- 
tion to become the locomotive, not 
only of H apnnim ' ITI ' wlti|mt i but of 
the whole Spanish electronics sec- 
tor. 

Planned investments in the four 
years to 1990 amount to Pta L280bn 
(SlOfan). 

TslBfcptea 4 k eiiiTffnlly plwmfwg « 

share p la ce m ent in the US of ap- 
proximately 5300m, which Mr Sola- 
tia said would be the largest ever 
operation fay a foreign company in 
the US market According to its 
prospectus, the application of US 
accounting practices would raise its 
declared 1988 net profit from Pta 
45J2hntoPtal05bn. 


Fiat buys out 
Nissan stake 
in Arna model 

By Alan Friedman In Milan 

FIAT has bought out a 50 per cent 
shareholding owned by Nissan of 
Japan in a joint venture with Alfa 
Romeo to manufacture the Aran 
modeL 

Fiat did not disclose the purchase 
price for the 50 per cent Japanese 
holding in the loss-making Arna 
plant at Avellino, near Naples. The 
Turin-based company obtzdned its 
own 50 per emit stake at the start of 
this year when it took control of Al- 
fa Romeo. 

The Arna venture has been a 
commercial disaster. Only around 
50,000 Anus (a version of the Nis- 
san Cherry saloon) have been pro- 
duced each year since 1983. The car 
haw not sold well in the Italian mar- 
ket The venture was set up origi- 
nally in 1980- 


/ 


NOTICE OF REDEMPTION 
To the Holder? of 
$100,000,00 0 

ROCKEFELLER GROUP INTERNATIONAL 
FINANCE N.V. 

13 W% Notes Due 1989 

NOTICE IS HEREBY GIVEN to the hoktas of the [Outstanding 
1314% Notes Doe 1989 (the “Notes*’) of Rockefeller Group Inters 
national Finance N.V. (die “Company**) that pursuant to the 
' ' ions of the Indenture dated uof Jooc 21, 1OT4 among the 

iy. Rockefeller Group, Inc. and Bankers Trust Company 


(tfei “Trusrec M ), and the terms of too Notes, toe Company has 
elected to redeem on June 21, 1987 ail of the outstanding Notes. 
The redemption price is 10114% of toe pn odpal amou nt thereof 
pfas accrued interest thereon to the date of reoempuom. - 
Payment of the principal and accrued interest will be made on 
tad after June 22. 1987 (that being the first buoness day on or aflCT 
m ,iwn mm) pirrender of the Notes and 


merly Banqoe Cu Bwietux 
to Ftenkfwt/Mliu. Bankets Trust Company 
Intcnmrkmate a Luxcmbo^S-A. in BanfaasTrost 

Company in Paris and Swiss Bank Corporation fa Basle (eaai a 


db* b«ik in The CUy of New York, or by a master to m 
United States dollar account maintained try a payee with a bank m 

1987 toe Notes w0I no longer!* outstand- 
ing and interest on the Notes will ense to acm*. 


rrporoni} to the United Sates toteroalRewnue Sen-** (“IRS") 
^w^*w»wWUitidfagata™teofa)%rito^Stota2stojprio- 
vidc the paying agent with an executed IRS Ream W-8, ^certifying 
under penafocsMperjw that the payee is Mt a Umted States pei> 
ton. oranoseuwd IRSFOnn W-9. certifying under penalties of 

- --Irlen iifirarlnn si timW r/wmiln m r 



togT AdStiona! information t epett fa g ami wit hh o ldin g require- 
menb may apply under two-U A. laws w payments on the Notes- It 
is recommended that you Consult wfch year own lax advisor as to 
the cotacquenccs of ibr redemption of your Note*, including ccr-' 
titoibonsrocoinpJctowhcB presenting yoar Notes foe payment, 
by Batitera Tried CampeayW Trustee 

May 15, 1987 


Premier Group income 
soars to R153.9m 


BY OUR FINANCIAL STAFF 

PREMIER GROUP, the South Afri- 
can foods producer indirectly con- 
trolled by Anglo American, boosted 
pre-tax profits 75-3 per cent in the 
year to March to reach Ri R M lro 
(577.5m). 

This was achieved during a peri- 
od when, according to Mr Tony 
Hw chairman, "ctHxfiniml In- 
dustrial unrest- and absenteeism 
played havoc with production tar- 
gets, as did consumer boycotts by 
customers.** 

Turnover at ftemier, which is in- 
volved in retailing as well as grain 
miffing, moved up 17 par cent to 
R2JS8ba. The total dividend is being 
lifted to 105 cents from 86 cents. 


paid from net earnings per share of 
232.5 cents against 1612 cents. 

Profits at its core Premier Foods 
division were substantially in 
ex c e ss of expectations while the 
group’s investment in Sooth Afri- 
can Breweries also paid returns. 

Rentier said it expected higher 
tutmmgg overall this year, provided 
the country experienced "relative 
political stability and reasonable in- 
dustrial relations-" 

Mr Bloom went on to claim font 
% adoption of an anti -government 
political profile had helped protect 
Its export markets since the imposi- 
tion of limited Western sanctions 
against the country. 


AG Group boosts capital 
to safeguard ownership 


BY 1BI DICKSON M BRUSSELS 

THE AG Group, Belgium's leading 
insurance company, appears to 
have secured itself against the at- 
tentions of unwanted predators. 
But the fate of Royal Beige, the oth- 
er tending company in the sector 
where Axa of France and Groups 
Bruxelles Lambert (GBL) both have 
substantial stakes, is this week still 
hffng ni g to -toe hfllimc a. 

Axa,in fact, lias displayed its in- 
terest in foe Belgian insurance in- 
dustry by buying shares in both 
groups but more recently has con- 
centrated its energies os Royals 


Beige. 

The result has been that this 
week AG Hnnm mreri a capital in- 
crease which seems designed to en- 
sure Omt a majority of the shares 

w»mnm fn frtendlv hfinds. 

At Koyate Beige, meanwhile, the 
position is e xpected to become 
clearer after the annual meeting on 
May 27. The battle at this stage is 
between Axe, which has at feast a 
25 per rent stake and possibly up to 
41 per cent; and GBL which is 
thought to arnsrol at least 25 per 
cent 


W. GERMAN LUXURY CAR MANUFACTURER FORECASTS STRONG GROWTH 

BMW turnover rises by 11% 


BY ANDREW RSHER IN MUNICH 


TURNOVER of BMW, the West 
German luxury car mater, rose by 
11 per cent to DM 6bn ($3.4bn) to 
mid-May this year, outstripping the 
rise in production and unit safes, 
said Mr Eberhard von Tfnanlwrini , 
the Pluiwiim. 

He said BMW hoped to maintain 

this level of increase at the parent 
company over the whole year, to 
give a likely total of DM l&5bn, as 
well as growth of about 5 per cent in 
production and unit sales. Last 
year, parent turnover rose by 52 
per cent to DM 15bn, with a 3 per 
cent fan to DM 17.5bn in the group 
figure due to the firmer D-Mark. 

The sharp rise in turnover in the 
first 4ft months over the same peri- 
od last year mainly reflected 
BMW's greater concentration on 
higher priced models, notably the 
new 7-series introduced last an- 

“This car at toe top of the BMW 
range was far outselling the compa- 
ny's ability to produce it," said Mr 
von Kuenhelm. 

He would not forecast the likely 
level of 1987 profits, after a rise in 
parent company net income - BMW 
does not give a group figure - from 
DM 300m to DM 337.5m last year. 


He said the overall economic situ- 
ation had become less buoyant and 
expressed concern about rising pro- 
tectionist sentiment in the US, 
where BMW sells a fifth of its out- 
put 

The protectionist theme was one 
which Mr Werner Brextschwerdt, 
chairman of Daimler-Benz, ■!« al- 
luded to at the company's press con- 
ference this week. 

Mr von Kuenhelm said the pro- 
tectionist threat was a greater prob- 
lem for BMW than the fall in the 
dollar, which h as seriously nffaMod 
German exporters to North Ameri- 
ca. 

Noting that the West German 
economy was ending several years 
of solid growth, be said BMW would 
be sad if profits in this or coming 
year showed a drop but would still 
turn in a good performance. 

Mr Volker Doppelfeld, the fi- 
nance director, added, however, 
that BMW was not expecting a fall 
in 1987. Last year, parent company 
earnings per share fell from DM 47 
to DM 39 as a result of dilution 
through a capital increase but were 
maintained if this was allowed for. 

Group earnings per share were 
higher than those of the parent but 



Mr Eberhard von Knenbeim; 
hoped to maintain increase 

down on the previous year, Mr Dop- 
pelfeld added. He gave no figure, 
but analysts have forecast around 
DM 60 a share against DM 64 in 
1985. BMW is paying a maintained 
DM L2J>0 dividend. 

The company's chief shareholder 
is the Quandt family, with over 60 
per cent Asked about reports of in- 


terest ter foreign car groups, Honda 
of Japan being the most recent to 
buying into BMW, he said the 
Quandts had shown no intention of 
selling. 

Mr von Kimnlmim said the com- 
pany would continue to invest heav- 
ily to modernise its plants and de- 
velop new models. In 1986, group 
capital spending rose from DM 
1.4bn to DM 2£bn, with consider- 
able investment in the new plant at 
Regensburg, as well as in the facto- 
ries in Munich and Dingolfing, all 
to Bavaria. 

So far, BMW has invested over 
DM 900m to Regensburg, be said. A 
second shift would be introduced 
there this autumn or winter. The 
company sells nearly 70 per cent of 
its total output abroad. 

Mr von Kuenheim said the Ger- 
man car market eased in the first 
three months of the year, with last 
December having seen a surge, 
while cars with catalytic converters 
still enjoyed tax advantages. But 
April had shown a big rise at BMW. 

In Japan, where BMW is the larg- 
est selling importer, sales rose by 
50 per cent to the first quarter. But 
it expects sales there for all of 1987 
to total about 20,000 cars 


Pickwick share offer meets big demand 


BY RICHARD TOMKINS IN LONDON 


THE OFFER for safe of shares in 
Pickwick, tile UK record company 
seeking a listing on the London 
Stock Exchange, yesterday became 
the latest share offering to have 
been massively oversubscribed 
amid a wave of public enthusiasm 
for new issues. 

Pickwick's offer of £L5m ($13.8m) 
worth of stock dosed yesterday 
morning with at least 90,000 appli- 
cations dunging about 350m shares 
- more than 50 times the number 
available. The allocation will be an- 
nounced today. Heavy rationing is 
inevitable. 

The level of subscription is on. a 


par with the response to foe E4Jm 
offer for sale of shares in the Bri- 
tish specialty retailer Sock Shop 
earlier this month, which was 53 
times subscribed. Last Tuesday's 
E3-9m offer of shares to Computer 
People, the computer staff agency, 
closed 21 times subscribed. 

This month has also brought the 
heavy oversubscription of the far 
biggs: Rolls-Royce offer for sale, in 
which more foan 2m people put in 
applications for nine times the 
£L36bn worth of shares available - 
a far bigger response than had been 
expe c t ed. 

“It’s stag mania," stud one mer- 


chant bank. The new issues mar- 
ket has gone mad. The public now 
perceives offers for sale as nothing 
more than a nw»HnK of making a fast 
bade.” 

Public interest in new issues has 
been stimulated by a combination 
of recent strong rises in the stock 
market and by the hi gh premiums 
attracted by government privatisa- 
tion issues, which have put large 
profits in the hands of a wide sec- 
tion of the population. 

At the same time, the number of 
offers for sale has been reduced by 
changes in the new issue rules, 
which have made-it-easier for com- 


panies to come to the London stock 
market through platings of shares 
with institutional investors. 

This has increased people’s hun- 
ger for the remaining share offer- 
ings. 

Some merchant hanks are con- 
cerned about th? effects which priv- 
atisation issues are having on the 
new issues market generally. The 
public does not seem to understand 
that smaller issues are a very dif- 
ferent story,” said one. 

These tremendous responses to 
relatively small issues inevitably 
lead to a great deal of disappoint- 
ment in the allocation." 


SUMITOMO CORPORATION OVERSEAS CAPITAL LIMITED 

US. $200,000,000 
Euro- Commercial Paper Programme 


Guaranteed by 

SUMITOMO CORPORATION 

(Sumitomo Shop Rabushiki Kctisha) 

Arranged by 

Morgan Guaranty Ltd 

Dealers 

Citicorp Investment Bank Limited 
Morgan Guaranty Ltd 

Swiss Bank Corporation International Limited 

Issuing and Paying Agent 

Morgan Guaranty Trust Company of New York 


Apra,19sr 


Ttiese teeuritks arc not registered underlie Securities Act of 1933 and may not be offered, soldordelwered 
in, or to nctfionak or residents ofctheUniledStatez. ThisannoimcementappeanaiamaUerofrecordotiiyi 





Fina ncial Times Friday May 22 1987 



ESTL. COMPANIES AND FINANCE 


J 


ASIAN OCEANIC GROUP 


IS PLEASED TO ANNOUNCE THE ESTABLISHMENT OF 


TURKINVEST 

A.O.G. MENKUL KIYMETLER A.§. 


BUYUKDERE CAD. 108 KAT 2 
80503 ESENTEPE — ISTANBUL 
TELEPHONE (90-1 ) 1 58 94 90 
TELEX 2801 1 AOG TR 
FAX (90-1) 173 04 65 


Turkey’s First Foreign owned 
brokerage and investment banking Firm 


Asian Oceanic Group 

HONGKONG ISTANBUL NEW YORK SINGAPORE 


MARCH 1987 


Schindler 
plans 
to raise 
SFr 210m 

By wmtan Duttorc* In Geneva 

SCHINDLER, the Swiss lift manu- 
facturing group, plans to raise up to 
SFr 210m{$145m) in new partidpa- 
certificate pqpitel to buttress 
sn pro* 

gramme. 

Mr Alfred Schindler, chief execu- 
tive, said the diversification was de- 
> signed to dose to SFr Ubn in 
i stages to group sales which readied 
SFr LKJbnin 1988. 

The annual general meeting on 
Jnne 15 will be asked to authorise 
tiie of 300,000 participation 
certificates at SFr 100 par with no 
purchase option for shareholders. 

Instead, shareholders will receive 
free issues of one warrant per reg- 
istered share and participation cer- 
tificate and five warrants per bear- 
er share. Twelve war r a nts will en ti- 
tie holders to one new participation 
c er tifi ca t e at a price of SFr 700. 

Schindler bad SFr 650m in liquid 
fends but the new equity capital 
was needed to reach ha diversmea* 
tian goal faster and without sacrifi- 
cing expansion in the lift and escal* 
star sector, Mr Schindler said. 

The capital increase is coupled 
wi& the previously announced pro- 
posal to raise for the first time in 
seven years the dividend for 1888 

from SFr 12 to SFr 15 per registered 
share ^ participation certificate 
and from SFr 80 to SFr 75 per bear- 
er share. Thu dividend payment in 
real terms would be merely res- 
tored to the 1975 level. 

Consolidated net earnings cHmb- 
ed by 5 per cent to SFr 48.7m in 
1986, generated entirely from the 
Core lift, escalator and rolling stock. 
h a n imxq ] 

Since 1979 Schindler, the world's j 
s econ d largest lift mnmrf*gtiir pr af- 
ter Otis of the US, has fought 
through acquisitions to suuntBin 
and expand its share of a stagnant 
SFr 7bn a year world market for 
lifts escalators. 

Srmnltanpongly ft iwwnlHirt. 

ed lift and escalator production by 
dosing or selling 10 wmi» nfiu » h i H i^ r 
units. Farther closures in West Ger- 
many Italy this year will com- 
plete the process. 

The group baa now been reorga- 
nised into two divisions, one of 
which will look for activities outside 

lifts and eSCalat OW ini aim malB * 

aQy to provide about one-tiurd of to- 
tal turnover. 


Holmes a Court emerges as 
mystery buyer of Texaco stock 


BY WILLIAM HALL M NEW YORK 


MR ROBERT Holmes 4 Court, the 
Australian financier, 
as tire mystery buys of Texaco 
shares, the beleaguered 05 oil 
giant, and disclosed that he had 
spent close to $50Qm acquiring a 6.4 
per cent stake in the comp any. 

Thp wwrfjrw mfinn pf TTAhnot a 

Courts interest in Texaco comes 
just over five weeks after Texaco, 
and two of its finance subsidiaries, 
filed for protection of the US bank- 
ruptxy courts. His was done to pre- 
vent the company being crippled by 
a massive damages a w ar d which 
threatens ite longterm survival. 

Share have been persistant ru- 
mours in recent weeks that a corpo- 


rate predator had been buying 
shares in the company. The shares 
have risen from a low of $28 ft, im- 
mediately after tits bankruptcy H- 
ing on April 12, to a new posbbank- 
ruptcy peak of 537ft. 

The Australian financier has al- 
ready sent a letter to Mr James 
ELrmear, Texaco's rtmwwnin, in 
which be states that the shares 
have been purchased for invest- 
ment purposes. 

“Our assessment is that the mar- 
ket has over-reacted severdy in de- 
valuing Texaco stock to current 
market levels, and that the intrinsic 
value of Texaco's assets Is substan- 


tially higher," Mr Holmes a "Court 
said. 

Texaco issued a brief statement 
acknowiedguig the preaence of its 
new shareholder “we assume he 
shares the view expressed by oth- 
ers that Texaco’s assets are at pres- 
ent undervalued and the stock is a 
good tong-term investment” 

Mr A COurfs purchase of 

15Jhn Texaco shares at prices rang- 
ing from $30,375 to $37 per shore, 
between April 23 and May 19, was 
disclosed in a filing with the US 
Securities & R xcbnng a (Vimmis siop 
(SEC) by a group of c o mp ani e s 
which be wwl w lt ! 


CDF-Chimie in talks with rival 


BY GEORGE GRAHAM IN PAIRS 

CDF CHUQE^ French state- 
owned chemicals group, is holding 
talks which could lead to it taking 
over control of La Grande Faroiase, 

nnrthtfr Pi wrii riiwnlHilit mn n wrn. 

The two c ompanie s are discuss- 
ing rg+vmaHgmg ttwr fcttifi'wp gp. 

erations which could end in CDF 
Qihnfe transferring its wpffito in 
the sector to La Grande Paroisse. 

This would take majority control 
of La Grande Panisse away from 


Air Ti giniiw, the multinational in- 
dustrial gases group which controls 
65 per cent 

Both ffffi pi miwi have 
howy y losses in tiwr ferfflim hnm- 
nesses in recent years, and CDF 
Chiinie has recently embarked on a 
restructuring plan, under its new 
president, Mr Serge Tchnnik. 

a CD F Qumie ai ms to withdraw 
train the manufacture of phos- 
phates and to rationalise nitrate 


production. It has already sold two 
pbmfai to Cedest, part of the Wen- 
del/CGIP group. 

La Grande Paroisse made losses 
of FFr 385m last year, compared 
with profits of FFr 51m in 1985. 

Losses at CDF Chiinie, which was 
recently split off from the state- 
owned coal mines Charbonnages de 
France, amounted to FFr 2.6bn 
($440zn) last year, including excep- 
tional restructuring costs of FFr 
2.11a. 


Enjoy reading your com- 
plimentary copy of tbe Finan- 
cial Times when you are 
travelling oa scheduled flights 
from. . . 

. . . Gcnrra with 
Air Canada. British Airways, 
British Caledonian. Lufth- 
ansa. B Al. Swissair. TWA 
. . .brick with 
Aerolineas Argentines, Dan 
Air, Jet Aviation. Crassair. B 
Al, Pan- Am, SAA. Swissair. 
TAP Air Portugal. TWA 
. . . Basel with 
Jet Aviation. Crassair 
. i . Bern -Lagano with 
Crossair 

FINANCIAL TIMES 

~ Emmci Bnanea N w ajp gr * 


U.S. $200,000,000 

BfG: 

Bank fiir Gemeinwirtschaft 
Aktiengesellschaft 
Floating Rate Notes due 1996 

In accordance with the provisions of the Notes, notice 
Is hereby given that for ax-month Interest Period 
from 26 May 1967 to 27 November 1987 the Notes 
will carry an Interest Bote of 7.9875 per annum 
and tbe Coupon Amount per US$10,000 will be 
US$410.47. 

inte rnational Westminster Bank PLC 


This QnnotmfiflfTTBnl appeals as a mnttar of reccrelcriy 


Thi s aim o up oemflPltappeaBQBainQBarcgiBCQPd only 


CAECL 


Ccriss© d’Aide d TEquipement 
des Collecttvitgs Locales 


FRF 2,600,000,000 
Multi-Option Facility 


Lead Manage? 

Gzddtt Commercial de Ranee 


Banque Fr nnyai«» <m C ommerc e Extetiour 
CcdSSS CentWlB de s tomrn «K Urmnlrrifnc 
Ctedtt Agzfcxfle Mutual de File de Fmnce-ltalcitfdli 
Credit Commercial d® Franco 
BanqueN ati ona te de Pails « QGdttlgonncds 
The Fuji Bank, Ltd. Paris Branch ♦ Banque Indosuez 
The Industrial Bank of Japan, Limited Paris Branch. 
TftriondeBcm q uesAiqbeset Francoises -U.BAJE • Via Banque 
Al Saadi Basque • Arab Banking Caqxnatton (ABC) Pails Brandi 
Banco de Bilbao, SA.* Banco Central SA. Paris Branch 
Banco deVlxoaya Paris Branch ♦ The Bank at Tokyo, Ltd 
Banque Hervet • Banque Petrafigaz * Chemical Bank 
IstltutoBancaiio San Paolo di Torino Paris Branch 
G6n6xale de Banque Beige (France) SA. ♦ Banco di Koxna (Fiance) SA. 
Banque doTUnion Maritime et H nandGre 

Agent 

Credit Commercial de Fiance 


( 

^iASSOCIHS 


FRF 700,000,000 

Medium-Term Multi-Option Credit Facility 


Lead Manager 

Credit Commercial de France 

Ftarttcipanis 

Credit Commercial de France 
The Bank ol Tokyo .Ud. 

Banque RA gi onale d’Esco mpto et de D6p6te (BEEP) 
Banque de ITJnion EuzopGenne 
Banque Worms 
Barclays Bank SA. 

Caisse Centrale des Basques Populates 
The Fuji Bank, Ltd Paris Branch 
The Ho ngk o ng and Shanghai Banking Corporation 
NMB Banque (France) 

Amsterdam-Eotterdam Bank NV Paris Branch 
Banque Veuve Morin-Pons (Dresdner Bank AG Group) 
The Chase Manhattan Bank, KA. 

Credit Suisse (France) SA. 

Deatsche Bank AG Paris Branch 
International Westminster Bank PLC 
Lloyds Bank (France) limited 
Morgan Guaranty TnrstCojapany of New York 

Agent 

Credit Coznznezcicd.de Fcance 



April 23. 1967 


March II, 1967 







f 






/ 



Financial Times Friday May 22 1987 


31 







-••• • ■ “i" . ’’c-c 


REUTERS NOW HAS A NEW NETWORK TO BRING 


GLOBAL INFORMATION WITHIN YOUR REACH 


After five years in development, Reuters 
is ready to unveil its Integrated Data 
Network (ION), the most advanced 
global information network in 
the world. 

IDN is a unique achievement It will deliver 
Reuters full unrivalled range of data, beginning 



with the fastest, most comprehensive 
service of securities quotes, news and 
market information from around the globe. 
Initially IDN will provide stock quotes from the 
world’s stock exchanges, together with off-floor 
market makers’ quotations. 

It will transmit them via cable and satellite 


to our international databases. Each database is 
duplicated. 

Reuters communications network will 
distribute this data to subscribers’ terminals 
around the world. 

For the first time, you’ll have all the infor- 
mation you want, but only the amount you need. 



TOWARDS 2000 




£ 


32 


Hxamdai Tta* Wday M*y SB IW7 


r* 


“The techniques change. 




\ 

i. 


The principles (lon i. 


Combining capital strength with global financing, 
advisory, trading, and investment skills, J.E Morgan 
continues to innovate to serve our clients better. 


Yet the principles that guide us in today’s integrated, 


technology- driven financial markets haven’t 


changed in 125 years. 


In everything we do we put the client’s interests first. 


a way of doing business that produces impartial, 


objective advice on any matter, 




however confidential. Many years 


ago J.E Morgan himself said it best: 


“The client’s belief in the integrity 
of our advice is our best 


possession 


99 



Change linked to continuity: JIE Morgan’s new headquarters rise 
on Wall Street two blocks from where the firm has had its princi 
offices for more than a century 


principal 




t) W61 IP. Hogra & Co. Tnrarpontrd. 

IRMatcnlfilir MffUwUeatifcMiaf nw far 
JJB Sfoipn a Co. hmpimtsd ind [or Moqpm Gwnaij 
t»t Caaptaj. limps Gummy Ijd.aa4 
ibulE hfijm mbm&irin 


JPMorgan 




/ 



r 


Financial Times Friday May 22 '.1987-' 


INTERNATIONAL CAPITAL MARKETS and COMPANIES 


33 


FRN prices recover after 
Citicorp loan loss move 


BY STEPHEN HOLER AND ALEXANDER NICOLL 


PRICES OF Eurodollar float* 
ing rates notes for US banks 
recovered modestly yesterday 
as the market regained its com* 
posure after Citicorp's an- 
nouncement that it would add 
$3bn to its loan logs reserve to 
cover Third World debt ex- 
posure. 

Dealers said the view that 
the Citicorp move would not 
cause problems to the banking 
system, and might actually open 
the way to an eventual resolu- 
tion of the debt crisis, bad 
gained hold. . 

Prices consequently recovered 
in the dated and perputnal sec- 
tor as trading houses covered 
short positions. Little retail in- 
terest apparently emerged, how- 
ever. 

Prices of perpetual FRNs. 
paper issued by banks with no, 
final maturity, unproved by 
about i point, while dated 
issues for American banks 
added between i and 1 point. 
The sectors fell on Wednesday 
by 2 to 3 points in reaction to 
the Citicorp move. 

However, the point (hat re- 
percussions could still be felt 
in bond markets to the Citicorp 
move was underlined by the 
withdrawal in the New York 
market of a $200m, 12-year note 
issue for Chase Manhattan, the 
price of which had dived in 
when-issued trading. Chase 
cited “uncertainties m the mar- 
ket place" in its decision. 

The Citicorp move prompted 
firms making markets in dated 
US bank FRNs to agree to 
widen their dealing spreads 
from ten basis points to 25 basis 
points for maturities before 
2000, and to 50 basis points — 
in line with dealing spreads on 
perpetuals — for notes matur- 


ing in the nest century. This 
decision had helped to restore 
some confidence among market 
makers, dealers said. 

Floaters for British banks' 
edged fractionally higher, fol- 
lowing declines of i point on 
Wednesday. 

In the fixed rate Eurodollar 
sector, trading was again sub- 
dued by the presence of 
traders, salesmen and their 
customers at the annual meet- 


INTERNATIONAL 

BONDS 


ing of the Association of Inter- 
national Bond Dealers in .Oslo. 
Issues, where changed, were i 
to i point filmier, supported by 
better ' sentiment both foe the 
New York bond market and the 
dollar. 

Rumours Intensified of ah 
Imminent i point rise in the 
US discount rate from per 
cent where it has stood' since 
August 21 1986, which was 
supporting bond prices because 
it implies improved prospects 
for the dollar. Short-term rates.' 
which . indicate the- cost of 
carrying securities -inventories, 
have probably nsehr enough 'not 
to be affected- by such an 
increase, dealers said. 

In the equity-linked sector, 
Sumitomo Corporation made a 
$300m issue with equity 
warrants which quickly moved 
to a 4} point premium. Led 
by Daiwa Europe, the issue has 
a five-year maturity, an 
indicated coupon of 1| per cent 
and par pricing. 

Eastman Kodak became the 
latest borrower to launch a 
hood linked to the price of 
gold. The issue, quickly in- 


Ex Merrill man joins Benetton 

BY ALAN FRIEDMAN IN MILAN 

BENETTON, the Italian 
clothing group which is 
embarked on an ambitious 
policy of diversifying into the 
financial services business, has 
appointed Mr Giovanni Franzi, 

45. formerly a managing 
director of Merrill Lynch in 
London, to head its new 
financial services . subsidiary. 

The services ’already include 


leasing, factoring, interest and 
currency swaps, underwriting of 
syndicated .loans, and insurance. 

Mr Franzi, who' will' be based 
in MUand, was Merrill's senior 
officer for investment banking. 

Benetton last year had turn- 
over of Ll.OfiObn (8822m) from 
clothing amri an additional 
L500bn of business in leasing 
and factoring. 


creased by UBS (Securities) 
from: -SlOOm to SISOxn, has a 
three-yes- Hie and. carries two- 
year warrants which will have 
value-of the gold price rises by 
more' than 25 per cent during 
that period. 

The pricing of the package, 
at 113.175, implied a 101 f price 
for (he 9 per cent bonds — 
giving a spread over Treasuries 
of 52 basis points at launch— 
end a w a rr a nt price of $118. 
-This means that -the warrants 
effectively cany a 25 per cent 
exercise premium over the 
yesterday's gold price of 
$470.60 an ounce. On exercise, 
warrant-holders will be paid the 
difference between the spot 
price at the time end $470.60. 
The issue traded' well within its 
fees. 

In the Australian dollar 
sector, Morgan Guaranty led a 
A$75m issue for Helaba 
Finance, a subsidiary of 
Hessische Landesbank-Giro- 
zeotrale and carrying its 
guarantee. The nine-year issue 
hss a 13} per cent coupon and 
101} pricing. Aegon, the Dutch 
insurance group, made a A$50m 
issue, led by Swiss Bank 
Cooperation International, with 
e four-year life, 14 per cent 
coupon and 101} pricing. 

In West Germany, Electric tte 
de France made a PM 300m 
10-year issue led by Deutsche 
Sank and priced at 99} with a 
• 5} per cent coupton. 

Dresdner Bank brought a 
DM 150m issue for Arab Bank- 
ing Corporation, with a five- 
year life, priced at par with a 
5} per cent coupon. The issue 
was well received and traded 
comfortably within its fees. 

D-Mark bond prices were 
slightly higher in shorter 
maturities, and little changed 
elsewhere. 

Ireland tapped the Swiss 
franc market with a SFr 150m 
15-year issue led by Swiss Bank 
Corporation, priced at par with 
a 5 per cent coupon. The issue 
was well received. 

Union Bank of Switzerland 
led a SFr 100m private place- 
ment for Compania SeviHana de 
Electriddad, a Spanish utility. 
The five-year issue was priced 
at par with a 4} per cent 
coupon. Swiss franc bond prices 
were mixed. • 


Listed are 

US DOUJUt 

snuustm _ . 

AUkt Nutans! 7% 9* 

A/S EtaoortflnUH 71*93— 
A/S DopwtltaaH7W— 
Austria 7% 97 

BP Capital 9** 94 

Brittali Tatccwa 71*96 

CaaoMl Soup KPa 95 

CMMa99fe 

CaaaffiM Poe. 20% 93 

CCCE 7i*91 

CNCA7VH. 
CKhotpSWOS 
CNdRIjnmatf 99t 

Credit Nrttaort 7% 92 

Crorti Notional 9% 43 
Mk NatioMl 7%0i — . 

Ptett B Ni l **" 7*8 9* 

Denmark Wa — S D 4% 91 

EEC 791 



XuLadet^iatesecradary-eurket 

'jk'trcJ-'*- la*":- 

■J7WW . - - a *■“ ■ -J-; 

VDtjitiAHiSTsT^ fmmt m - am 

Ctogaku EJ*aric599 — . B M8» a 10 



FMred7%97 
FM*m!7%99 

Fort Motor 0*1. BPj 91 _ 

Fort Motor Cre* 90- 
Sw. EMC. Crtti.ua* 00— 

Hooch 7>*92 — u — 

Ho«di7%<M 

Hotfdt IL 97 _ 

Lflwrtj Mutual 8% 9fc 

LTC8 0/ Japan 8 91 — . 
LTCa«rJrtW«97 

Mortdh-Bont Crtd. 71* 93 

Mtmutfta.7^93 — 

Mot— Amartca 7% W •— 

Noraw KW—n7ii 91 — 
ft— o toe. 7* 93 

<tere Alter* 10% <K~~ 

On i iubw ti Con. 10% 99 
Erttoa Purina 11% 93 — . 
Saab Buna 9^91 
S*tikatdwnanU>V92— 
Staa 0. S. A«st- 9% 93_ 

StauM S 090- — 

3te.tre.Creo.7%91— 

SMti.EM.CMti.2092—. 

3te*n8%9fc 

»Mtirt792 — 

Smtitn Kb— art W% 90 

Stem Khedom 791 

Trip, Fkwoc* 71*94 — — - 
To— ■ MOW Cr— * *9 

Tq—a MV. Cniti. 7>* 92 

Vtewiaa tkp. ll% 9Z_ 
WMtiBaak792— — • 

V— Tnrat Put •% 93 


95% 98% +9* 
Wt *«t * 

»%«%-»* 
U Wl *9. 

m w* tA 
an wt — -*% 

■a . m «% -f* 

33D 184% lDCW +W» 

a— 3 DS% UA I 

2B0 MO* M3% -P| 
U0 53% «% 49% 
M 98% 92% O 
Mi 92 9ft +SJi 
» m « A 

UD 95V «*» ■*•« 


na 

2M Wi 
2— 10% 
m Wt 

IN 93 *i 
MS 30% 
MS 2*U» 
MS T2M*i 
129 99% 

3M IOCS 
1SS 190% 
230 UP* 
MS 9S>* 
MS M3% 


V* +«% 

■Ok 45% 

w» +*>» 

«% 4*% 

«% o 
S®% 0 

1IA +*l 
MS 48% 
1— % 

99% 48% 
Wi • 
92% +Wo 
10% 48% 

W* 

Wj -•% 


MS M% 90% * 

M0 m JM% • 

33S tn «% +•% 
MO JW% MTV «*% 
08 Wo 9M 48% 
IN 99% 9S% +»W 


sevncHc sunt 

men _ 

AjWrittB S?OL 4% 95 W 

te»Ca*mcal 5%9b — MS 

8H 

Em.cwu— nv?-. PI 

ERj4n.Sk. Km 3% 90 - 

I ADS » 97 — . 



floBBt ff ti y * t» May 21 


Crctitt National 4% 92—. 15 fltt 1M% -S% . -X% M7 
IMMkMkgdort5%9Z. 1M VOH lsi% -s% -A Ul 

EEC 4% 93 ; 25 200% UR -S% -1% AS7 

dac. do France 5% 9S — *• 

Ketsal Electric *% 99 — AS 
Hamay4%92 .. . AS 

SNCFA%93. 


9nrioi, Kingdom 5% 95 _ -» 


A« Bectrata lOJjSO AS 
Sraa Book 1590 AS — » fM2% W% 

« mstiar3*&& 

Ooutsdio Bk.lA%92AS— SM 1A«% lflS% 
DMtdrt Bk.14%92 A$— 29S MS% 201% 
MartotfWiF. 2A90AS 9S M3% UN% 
Warid Sank 14%92 AS — MS 10% 104% 
CannSanPac.lO%SOC9. 75 
CfctytiorCatpn.l091C$~. 

Ccnttw Flo.3X%95 CS — 

CMAC9%92CS . 


10% 90 CS 

*92CS — 


Sun Acc. 10% 92 

Coca4M» F. C. 17 90 NS 

fiMmaritl7%89RS 
Denmark 7% 92 Ecu , 

□8 7% 91 Ecu 
I Ewattfn7%97Eca — 
RewZ*m*nti7%93Eo» - 

SDR 7% 95 Ecu 

Ftataiti691FI 

Mort-Bk. DamarkbUn fit 19% 9* 

Thyssec7%90 FI SO tUB. U3% 

Tram ' M tUB% M 2% 

AmarfcanBnati 9% 9AC— SB 91% M0 

AMr.EgruOC 10 9^ C 40 «0<% XMV 
Dntxciw Bank 9% 97 £ — . 33 1U% M0% 

HaDTax BftL Sec. HP*97 £ MS 203% 183% 
Irrl Oent. IndL 10 03 £_ 100 103% 10% 
Imp. Cbm. Ml 10% 92 S 35 
hws. io ML lit 10 93 £ AO MZ% 

Land Securities 9% 07 £_ 00 1W« 

Lcotif BMa Soc. 10% 91£ SO ISA 
Nationwide BS 10% 0 £ 75 UB% 
NSWTrfajajlO%92£- 50 Urt% 

NMf lasce. 10% 92 E'— AO 
jLSainbwylO%93C AS 

CoE8%95LFr AAO 

' £188% 93 UPr L— IMS 

PIJOATIIM SOI 

NOTES 

Alberta 3 93 

Alliance A Loit, Btdg. 9# £ OAS 

B«W«n.OWniqf91 — 0 
Brftat»ta593 t 0% 

Chase Manhatiaa Cwpn.91 W* 

Citicorp 9S— — — {% 

Crttiit l yon— 1 » 5 00 AA 

EEC 3 92 DM — • 

EEC5%S)Gn 

HrtteBltig.Soc.E99 U 

Mktiend Bank 01£ — — — • M 

WUc Mridg. Bo^ SOIMi 

Hew Zealand 5 97 £ 007 

New Zealand 5 01- — 9 

Sb eain ai Lebrrwn HMga.91 .(& 

United Klngtiwn 5 92 — — . • 

WoomJde Financial 5% 77 - 9 

WartwWi595£— — ti% 



Artcs5920M 


2Ati% MS% 4-2% 


Mtaoto earner. Z%VI DM V* U» J& .» *fr 

SESKSSfrz ffi S & %• SS 

Futl Bank 21, 00 ltd 1A23 1H 30 +3 


Orta Bank Z% 

Pul Bank 2% 00 

FM Heavy ' ' 

Rt|b*u39» 


45 

(300 S«S 05 123% IB • 

SM an, 232% 133% 40% 
GWBna Banh2%02 « MO 231% US -«% 

SSSiSSf^S-SSS 3 S5 5% 

SSSSSsSzni & 3* Sf* 2 a* 4*% 

*farata3%00 2M 2SM . 103% U5% 0 

NteMBec.2%00 2M 220 04% 235% +2% 

MtjaxmOBCo.300 SM 9B MSS m -< 

0«Dic.Ind.3%W 28M MB 01% JW, ~a% 

0awmHMeW2%O2 ABET 2390 92% 93% -FS* -3 

Saowa 8artt2%00 MS HO 377% 370% tO% - 

SuminnoBank2%ao ■ gH W BK +£> ' J 

Tatitiba Ceramic* 3 00 US 173* 127% 120% -0% X 

ttiapoo OU Co. 2% 92 SFr „ 1W1MW MS >1 
Vakoiwma Book of Z% 01 - HOA 100 20 20 A 

Price- 


145 


re wwimiwi am****" >- |Ai.i 
tOrtg one marimt mkar srtrtlad a price. 

Tba *Wti h tbe yield la redemption of tbe inti p rice ; 

tte ammrt M I* in mMloni rt anenqr an0eaoef. for Ven Bond* 
k te in bifllwB. Ctaege on week -Change o*er price m wnrtt 


FT INTERNATIONAL BOND SERVICE 

aateiasyasMBrta^ y.n> 



S Korean 
securities 
firms lift net 
by 265% 

By Maggie Ford m Seoul 

SOUTH KOREA’S securities 
houses increased net profits by 
an average of 265 per cent to 
136bn won (|163.6m) in 
1986, reflecting the boom in 
the co unt r y' s stock market, 
Ministry of Finance officials 
reported. 

Top earner was Daewoo 
Securities with a 457 per cent 
rise in net profits from 21bn 
won In 1985 to 15.5bn won 
last year. Daishin Securities 
saw profits rise from 3.6bn 
■ won to 13.1hn won, an in- 
crease of 262 per cent. 

Ssangyong Securities, joint . 
lead manager of the Korea 
Eurofund through which 
foreign investors can buy 
stocks in the Seoul market, 
saw its net profits go up by 
242 per cent from &3bn won 
to lL5bn won. 

The dramatic rise in profits 
follows tiie substantial 
increase in both stock prices 
and turnover on the Korean 
stock exchange In the post 
year. The value of shares 
traded daily on avenge In 
1985 was $UL8m, a figure 
which jumped to $32m in 
1986. In the find three 
wwwirtia of this year, accord- 
ing to broker W. L Carr, the 
value had risen to 575m. 

The **™p*"t*« have also 
made great gains from securi- 
ties trading with their own 
resources. Securities firms 
ore allowed to invest up to 
40 per cent of their own 
capital in the market. The 
Korea- stock exchange com- 
posite price Index increased 
from 199.76 at the dose on 
March 3L 1986, to 405J3 a 
year later. 

Companies are planning to 
Issue new stocks this year 
totalling 577bn won, according 
to the Securities Supervisory 
Board. The South Korea con- 
glomerates head the list of 
companies phnnn»f to go to 
tiie market. 

The Samsung group is to 
raise capital of 84bn won, 
Hyundai is to issue new stock 
worth Tliftm won and 
Daewoo will raise 68.7bn won. 

The planned issues will 
bring the total of new capital 
raised this year to 668 bn won, 
slightly lower than last year's 
total. 

Hong Kong 
office for 
Dong Shuh 

By David Dodwtil in Hong Kong 

DONG SHUH, South Korea's 
largest stockbrokers behind 
Daewoo, has opened a repre- 
sentative office in Hong Kong, 
tiie first Korean broker to 
establish a presence in the 
British territory. 

The threeman office will 
for the time being be con- 
fined to research work, and 
to establishing links with 
international institutions in 
Hong Kong, since the Govern- 
ment in Seoul has yet to 
provide licences for local 
broking houses to solicit 
foreign investment In Korea's 
stock exchange. Tight foreign 
exchange controls currently 
prevent outward investment 
fro mKorea. 

Mr Kim Hyundong. Deng 
Shuh's general manager is 
Hong Kong, said yesterday 
that Korean government 
approval for overseas licences 
could be given In 1988. He 
said that once approval was 
given, the company would be 
seeking institutional invest- 
ment in the Korean market, 
and would be looking to par- 
ticipate in underwriting new 
listings in tiie Hong Kong 
market. 

D>tng Shuh has a paid up 
capital of US$46m, with 
representative offices in 
London and Tokyo, and clans 
to open an office in New York 
next year. 

The Korean stock market 
currently has a daily turn- 
over of about half the 
EOCSXbn (US$Z28m) turnover 
at present being recorded in 
Hong Kong. 


g l o rttt gartoWrtMiPrtrtalattrtlBJGihrtMrt—^, — 

Cowon rtmm b mMmrn. Mrt-Orto md AMpmheMMt* rt%£ 
tte. Stetfl-MMta AM Dmwo oKortti rtt* fti M Ma tt ; 
Attort ri*< rateMar US tioMm. CcMi-Tbt onw aw*. 

C*nv«te Boatiu DcrtMtatted (■ drtlaK Mta ottenrisr tefcrtart 

On tiNteCtOAft « «v- CW. tint 1 - first dat e for cnmnfea Jn» 
riwrrt. Crt. prai-tentiort »mooi«flf tod porter* W M N In 
csmnqr rf rtm* m cobwhWi nte find at umc. Pirn -Mmmsr 
rtwhoaot ttt coroc oRKihe price of MMhtasrtMW rti tte bootf 
o*«r UwtMXt r*e*« prico of Hi* Urns. 


Transfer of Euroyen bond 
centre to Tokyo suggested 


BY CLARE PEARSON IN OSLO 

MR YU SURE RASHIWAGI, 
chairman of Bank of Tokyo, yes- 
terday called for the Euroyen 
bond market to be repatriated 
from London to Tokyo and said 
this would give “ a strong posh 
to tbe lagging efforts to inter- 
nationalise the Tokyo capital 
market.** 

Addressing the Association of 
International Bond Dealers* 
annual meeting in Oslo, Mr 
Kashiwagi also called for a re- 
view of Article 65, which separ- 
ates the activities of banks and 
securities houses in Japan, in 

Bank of Japan 
to shorten 
settlement time 

By Peter Bruce In Tokyo 

THE Bank of Japan, the central 
bank, said yesterday it wQl 
shorten dramatically the tradi- 
tional bond settement period in 
tiie Tokyo financial market. 

Bank officials said it was 
planned to introduce a four-day 
settlement period »on and 
then to work towards an over- 
night delivery system that is 
used in other advanced financial 
centres. 

At present, bond deliveries 
can take place up to 20 days 
after they are traded, with 
settlement dates fixed on the 
10th, 20th and last days of 
every month. 

The long settlement times 
have on occasion been blamed 
for distorting the bond market. 
Speculation with bonds not yet 
paid for had damaged tiie 
stability of transactions, officials 
said. 


order to broaden participants in 
the domestic market. 

Dealers at the conference ex- 
pressed concern that a switch of 
the Euroyen sector to Tokyo 
would deter European investors 
who, they said, had fuelled mas- 
sive growth in the Euroyen 
market. 

Last year new issue volume 
in the Samurai market (the 
domestic market for foreign 
borrowers) declined by 38 per 
cent to Y785bn. At the same 
time, new issues of Euroyen 
bonds by non-residents jumped 
to Y2,487bn — 85 per cent more 


than tbe year before. 

Mr Kashiwagi envisaged the 
repatriation of the Euroyen 
market as part of a wider liber- 
alisation in Tokyo. Steps taken 
by the Ministry of Finance to 
remove constraints on the 
Samurai market were not en- 
ough, he said. 

An overall reform was 
needed which would involve al- 
lowing banks to hold non-resi- 
dents' Euroyen bonds in their 
offshore accounts and bringing 
the taxation of securities in 
Japan into line with inter- 
national norms. 


Dealers told not to lose 
touch with final investors 


THE DANGER that inter- 
national securities houses were 
forgetting the needs of final 
investors in their drive to 
expand new issue business 
formed the subject of lively 
debate at the Association of 
International Bond Dealers’ 
annual conference yesterday, 
writes Clare Pearson in Oslo. 

Applause greeted one 
speaker who said the collapse 
in liquidity of perpetual float- 
ing rate notes last December 
and the subsequent decline in 
the conventional FRN market 
showed houses had forgotten 
“ the curtain at tbe end of the 
line.* * 

But Mr Steven Licht, manag- 
ing director of Merrill Lynch 
Europe, replied: "Reports of 
illiquidity of FRNS have been 
exaggerated. Investors have 
been able to sell— though they 
might not have liked the price." 

However, the need to 
improve liquidity in the Euro- 
market at a time when succes- 


sive liberalisations have drawn 
many investors away to che 
domestic markets was a theme 
taken up by a number of other 
speakers. Mr Charles McVeigh, 
managing director at Salomon 
Brothers International, said 
this made It vital for firms to 
maintain relationships with 
clients. 

Mr McVeigh also emphasised 
tbe need for firms to decide 
whether to deal in all the 
major capital markets or 
become niche players. 

He foresaw that increased 
competition and rising costs 
associated with the demand of 
domestic regulators meant there 
would soon be no room for tbe 
middle ranking Euromarkets 
house. 

Replying to concern from the 
floor that niche players would 
be ignored by borrowers, Mr 
John Brown, chief financial 
officer of Standard Oil, said: 
“They can be very successful. 
It is those that have not yet 
decided that have the problem.’’ 


Abbey National to double facility 


BY OUR EUROMARKETS STAFF 

ABBEY NATIONAL. the 
second-ranked British building 
society in terms of assets. Is 
aiming to double to £500m the 
size of a financing facility it 
signed last October with a group 
of banks led by SamneJ 
Montagu. ■ ' : . 

- The financing, an uncommit- 
ted. tender panel facility pro- 
viding cash advances with 
maturities of up to six months, 
will also be given an option for 


issuance in any traded Euro- 
currency including Ecus. 

The previous facility, with 43 
hanks, hay been heavily used 
by tiie building society. 
Montagu’s intention is to invite 
selected new banks to join the 

financing ? 

National Westminster Bank 
has been mandated to arrange 
a $250m multi-option facility 
for Reed International, tbe UK 
publishing group. Among the 


purposes of the seven-year 
credit, which includes options 
to raise money in sterling, are 
the backing of commercial 
paper and financing of acquisi- 
tions. Terms were not disclosed. 

County NafWest said it bad 
arranged a £50m sterling com- 
mercial paper -facility, with a 
dollar option, for the John 
Crowther Group, the US tex- 
tiles company: County. Lloyds 
Merchant Bank and Montagu 
have been appointed dealers. 


Fecsa pulls 
back from 
interest rate 
cut threat 

By David White in Madrid 

FUERZAS Electricas de Cara- 
luna (Fecsa), the Spanish power 
company which is trying to 
renegotiate $5bn worth of 
debt, has made a conciliatory 
gesture to its bank creditors by 
backing down on its threat to 
cut interest rates unilaterally. 

At the end of last month, it 
told banks that until an agree- 
ment was reached it would 
apply the reduced interest 
rates which it was seeking as 
part of its proposed viability 

plan. The terms of this plan, 
which would cut interest on 
dollar loans to 1.5 points below 
the London interbank offered 
rates (Libor), have been 
rejected by foreign banks, 
which hold ' about SlJlbn in 
foreign currency Fecsa debt 
In March, the company sus- 
pended principal repayments on 
all its bank credits. 

Fecsa's change of position is 
pegged to the formation of a 
steering committee of creditors 
to negotiate a rapid solution for 
the company, whose problems 
have been blocking other 
Spanish private sector utilities 
from access to the international 
markets. 


Equity offering 
by Midi unit 

By Our Euromarkets 
Correspondent 

COMPAGNIE Financiere de 
Paris, the financial services sub- 
sidiary of the Paris-quoted 
Compagnie du Midi, yesterday 
launched an initial public offer- 
ing of shares split between the 
domestic and international 
equity markets. 

Midi, a diversified holding 
company, will retain control of 
the company after the offering, 
which is thought to be the first 
initial public offering for a 
private French company to be 
launched simultaneously in both 
international and domestic 
markets. 

A total of 1m shares — 22.36 
per cent of Financiered equity 
— is being offered at a price of 
FFr 540. Half of that will be 
offered in France through 
brokers Nivard Flornoy, while 
Swiss Bank Corporation Inter- 
national is handling the inter- 
national tranche. 

A group of 22 has 

agreed to underwrite the inter- 
national portion, which is being 
targeted to three main groups 
in the UK, Switzerland and the 
rest of the world. 


0 The Rwwlrt Tte* Lrt_M07. 

»hmrt 0tfnft»T3lfNNt 
Q&TASTltEAM 


inwMtwfcitetta 

Da nppte Rr 


N. AMERICAN 
QUARTERLIES 

CARUNQ O'KEEFE 

Brewing 


M . '* .1 

E~ ZU 


CS 

CS 

Ytef 

Ravnuos - 

888. Ore 

S3X9m 

Op. n*t «aco*n* .... 
Ob. not por *h*r* . 
t Lm 

0.50 

1 . 06 m 

tO-04 

| CAMPBELL SOUP 

1 Food procoMor 


1SB5«7 

1286-86 


5 

S 

Third otrertar 




48.1m 



0.7* 

0.79 

Nfno restate 

a.asbn 

Rovomi** — 

S^Sbn 

Not por a hare 

2.73 

2.71 



1986-87 

cn 


S 

s 

Sooond qiartar 
Htvtnim — 

952m 

813m 

12 m 

0.31 


0.77 

I 



i US SHOE ' 

1 fnoiwHr 


1387 

us* 


s 

S 

Ffait qirerrer 
Rlvtnoos ..... — — — 

505 An 

06.9m 

35m 

0.07 

Hot Incoreo 

Noz pai share 

_ 0.18 


NEW ISSUE 


AB these securities having been sold, this announcement appears as a matter of record only. 


May, 1987 



I 


TATEHO CHEMICAL INDUSTRIES CO. , LTD. 

(Tateho Kagaku Kogyo KabushUd Kaisha) 

(Incorporated with limited liability in Japan) 

U.S.$50,000,000 

2 PER CENT. GUARANTEED NOTES DUE 1992 WTIH WARRANTS TO SUBSCRIBE FOR 
SHARES OF COMMON STOCK OF TATEHO CHEMICAL INDUSTRIES CO., LTD. 

unconditionally guaranteed as to payment of principal and interest by 

The Taiyo Kobe Bank, Limited 


ISSUE PRICE 100 PER CENT. 


The Nikko Securities Co., (Europe) Ltd, 


Baring Brothers & Co., Limited 

Bayeriscbe Vereasbank AktfepgeseHschaft 
Daiwa Europe Limited 
KOKUSAI Europe limited 
Merrill Lynch Capital Markets 
Sanwa International T Anited 


Nomura International Limited 

Daiwa Bank (Capital Management) Limited 
Robert Fleming & Co. Limited 
The Lucky Securities Co., Ltd. 
Nippon Kangyo Kakumam (Europe) limited 
Taiyo Kobe International Limited 


Union Bank of Switzerland (Securities) Limited 













3* 


Financial Times Friday May 22 1987 


The 

Premier 

Group 

Premier Group Holdings Umitad- Go. Reg. No. 01 40431308 
(trKorparatedki theRepubScaf South Africa) 

BEST YEAR EVER 

I am pleased to report record results 

an increase of 55% in attributable earnings, 

higher dividends, 

good prospects for the year ahead. 

A H Bloom, Chairman 


PRELIMINARY ANNOUNCEMENT 

for the year ended 31 March 1987 


Turnover 

R2,690 million 

UP 

17% 

Trading Profit 

R 157 million 

UP 

16% 

Profit before Tax 

R 154 million 

UP 

74% 

Attributable Earnings 

R 148 million 

UP 

55% 

Market Capitalisation 

R2,671 million 

UP 105% 

Earnings per Share 

233 cents 

UP 

43% 

Ordinary Dividend 

105 cents 

UP 

22% 


DECLARATION OF FINAL DIVIDENDS 


ORDINARY DIVIDEND (NO. 148) 

A final ordinary dividend for the year ended 3 1 March 1987 
of 89 cents per share (1986:54 cents) has been declared 
payable on or about 15 July 1987 tomenaberszegutecedin the 
books of the Company at the close of business on 26 June 
1987. This declaration, together with the interim i " ’ 


ntsper share (1986:86 cents). 
REFERRED ORDINARY DIVIDEND (NO. 3) 
Preferred ordinary dividend (No. 3) for the six months 
ended 31 Marc h 1987 of 67.5 cents per share (1986:40.3 

members reg is tered in thebocka of the Compaiff at dm 
dose of business.on 26 June 1987. 

These dividends are declared in die c urr ency of die 
Republic of Sooth Africa. Dividend cheques will be posted 
on or about 15 July 1987 to members at their registered 
addresses and will be dispatched from the office of the 
Transfer Secretaries in Johannesburg to all payees except 
those to wham payment will be made from die offioeof the 

Umite^.^yhstruc^n^ch trill necessitate an 


alteration in die office from which payment is to be made 
must be received on or before 26 June 1987. 

Payments from the office of Che Landau Registrars of the 
Company will be made in United Kingdom currency 
calculated by reference to die rate of exchange ruling on 
3 July 1987 or at a rote not materially dif feren t therefrom. 
Non-resident shareholders 1 tax at die rate of 15% and 
United Kingdom tax will be deducted from the dividends 
where applicable. The transfer bodes and register of 
members will be dosed from 27 June 1987 to 5 July 1987, 

both days inclusive. 

Transfer Secretaries: By order of the Board: 

Hfll Samuel Registrars (SA) Ltd (Mra)JAEIgieCA(SA) 


6th Floor 
94 President Street 
Johannesburg 2001 

London Regist rars : 

Hfll Samuel Registrars Ltd 
6 Greencoar Place 
London SW1P 1PL 


Group Compaq Stemmy 
21 May 1987 

Registered office: 
Premier Group Centre 
1 Ne wt o wn Avenue 
KiHamey2193 
South Africa 


Cofria the cAtmmtt be posted to Registtred Shm*iold*n ami can beobtamtdfnm duLaadoHStcnOmtSi 
Bamazo Brother* Linattd, 99 Bishopsgme, Loudon EC2M3XE. 


This ad m r t istnma oppeon or a motor of nmi mfy. 


April 1987 




Confederation Life 

INIUMNCI COMMNV « T ■■ 

Through its Subsidiary 


Confederation 

Mortgage 

Services 


£ 320 , 000,000 

Transferable Substitution Certificate Programme 

Distributor 

Bank of Montreal Capital Markets Limited 

Purchasers of First Tranche: 


Bazik of Montreal 
Basque Indosucz, London Branch 
The Taiyo Kobe Bank, Limited 
Bank of Ireland 

National Australia Bank Limited 
State Bank of South Australia 


Golf International Bank B&G 
The Rural and Industries Bank of Western Australia 
Westpac Banking Corporation 
Bank of Tokyo International Limited 
The Sanwa Bank Limited 
The Tokai Bank, Limited Banco Totta & A gates 


Adviser and Agent 



BANK OF MONTREAL 


INTL. COMPANIES and FINANCE 

Pacific Dunlop, Oilmet launch bids 


BY BRUCE JACQUES IN SYDNEY 


TWO TAKEOVER bids worth 
more fan ASSBOm (US$420m) 
were announced yesterday as 
acquisition fever continued In 
Australia. Pacifi c Du nlo p, t he 
rubber-based i ndust rial group, 
is winWng a a*aggifi offer for 
British-controlled textile pro- 
ducer Bonds Coats Batons, while 
Oilmet Investments, which Is 
controlled by Mr Bene Bivkin, 
the high-profile Australian 
stockbroker, has launched a 
A$S60m Offer for the QBE 
Insurance group. 

The Pacific Dunlop bid was 
rumoured earlier this week and 


has an unusual condition. It 
requires Bonds Coats Patous 
shareholders to approve the 
sale of the company's thread 
and hand knitting businesses to 
the company's : British-based 
parent Coats Vlyella, which 
controls nearly 55 per cent of 

Its capital. — 

The British company's direc- 
tors have agreed to accept the 
bid if the proposed sale ' is 
approved. This would effect i vely 
split the group into its compo- 
nent parts 

Pacific Dunlop will retain the 
Bonds division which has a 


number . of established brand 
names in Australia. The offer 
is AS5.75 fo reach Bonds Coats 
Batons share and A$2 is also 
being offered for the company’s 
500,000 preference shares. The 
offer is also cum a foreshadowed 
one-for-ftve bonus issue by 
Bonds. 

The bid compares with a last 
rale price of AgS.36 for Bonds 
before the bid was announced. 
The shares have traded as low 
as AgO.flO tills year. 

Ollmefs offer is A$14 a share 
for QBE, conditional on 50 per 
cent acceptance. QBE shares 


rose ASL5Q to the bid price in 
the market yesterday, but Mr 
Bivkin points out that the 
shares were trading as low as 
Af7.50 before he began buying 
earlier this year. _ 

The success of the bid win 
depend on the attitude of 
Burns PhUp, the trading house 
which owns 50 per cent of QBE 
and has been in a rationalisation 
mode in recent year*. 

The bid is cum a current one* 
forgone bonus Issue by QBE and 
win be finance by NZT Securi- 
ties, supplemented by internal 
funds. 


Rising yen hits Japan’s; electrical groups 


BY IAN RODGER IN TOKYO 

JAPAN'S leading electrical 
groups are hoping for a slight 
recovery year following the 
second year in a row of sharp 
declines in their profits caused 
mainly by the rising yen. 

Hitachi, the industry leader, 
as weH as Toshiba and Mitsu- 
bishi said they were counting 
on an upturn this year in the 
semiconductor market while 
demand in most other areas 
would remain flat 

Hitachi and Mitsubishi also 
said their profits would be 
boosted this year by the bene- 
fits of their rationalisation 
efforts in the past two years. 
Hitachi wrote off Y20-5bn last 


RBUU5 FOR YEAR ENDED MARCH 1987 
Saks " Change 

Ybn 9T 


Pre-tax profit Change 
Ybn % 


Hitachi 

Toridn 

Mttsubtahi Electric 
Fqfl Electric 


2,924* 
2JS03A 
1 ,8035 
39X9 


-2i 

3L5 

-44 

-IJD 

41.2 

-49 

“VO 

2M 

—34 

+1* 

4 S 

-21 


year, most of it in advanced 

depredation. 

Hitachi's pre-tax profits last 
year were only a third of their 
peak level of Y2555hn In 1985. 
Toshiba’s profits have fallen by 
71 per cent over the same 
period. The surge In the value 


of the yen has hunt export sales 
of many products and dashed 
export margins. 

Hitachi said Ms exports 
dropped 15 per cent last- year. 
Toshiba said that although Its 
sales were flat, the yen’s rise 
caused a foreign exchange loss 


of YUOfaxu The value of ex- 
ports was maintained at 
Y72&8bn, mainly because the 
spectacular growth of sales of 
lap top comparers and large 
(one megabyte) semiconductor 
memory chips, offsetting de- 
clines in exports of other pro- 
ducts. 

Toshiba and Mitsubishi Elec- 
tric said domestic sales of con- 
sumer products, such as colour 
tele virions and videocassette 
recorders, grew satisfactorily, 

Mitsubishi cut its annual 
dividend from YS a share to Y6, 
while the others maintained 
theirs, Hitachi at Y9. Toshiba at 
Y4 and Fuji at Yfi. 


Fuji Photo Film boosts 
first-half profits by 8.8% 


BY OUR TOKYO CORREWONDENT 


FUJI PHOTO FILM, Japan’s 
leading maker of photosensitive 
materials, with a 70 per cent 
domestic market share, re- 
ported an 84S per cent rise in 
pre-tax profits to Y82.97bn 
($450m) in the half-year to 
April 1987. 

Net profits were 4 per cent 
higher at Y29ASbn. The com- 
pany said the cost-to-sales ratio 
declined 3 percentage points, 
rtwreVn to a decline in raw 
material prices and rationalisa- 
tion of its photosensitive emul- 
sion production. 

During the half-year, the yen 
appreciated by about 20 per 
cent; which slashed export reve- 
nue by YLSbn. However, sales 


of consumer photo products and 
industrial products fared well. 
Overall turnover improved by 
3 oar cent to Y332.44bn. 

In the current half-year to 
September, the company expects 
a business climate aw- 

ing to the continued strength 
of the yen and intensifying com- 
petition. An upsurge in the sti- 
ver price is also expected. 

For the full fiscal year, Fuji 
projects pretax profits at 
Y114bn, unchanged from the 
previous year, on turnover of 
Y670bn, up 4 per cent. It will 
peg the year-end dividend at 
Y6J75 a share, unchanged from 
the previous year, to pay Y1350 
for the year. 


Crown completes Its case 
in Carrian fraud trial 

BY DAYH3 DODWELL M HONG KONG 


LORD BENSON, an authority 
on the accountancy profession 
and one of the Hong Kong 
Government's leadh^ prosecu- 
tion witnesses in the Carrian 
fraud trial, completed giving 
evidence yesterday, bringing 
the crown’s case to an end after 
a Mreonth period In which a 
total of 101 witnesses were 
called. 

Carrian Investments, a ship- 
ping and property group, col- 
lapsed in 1983 wit h d ebts 
estimated at HKplObn 
(US£L28bn). Its ormer chair- 
man, Mr George Tan, and five 
associates, face charges of con- 
spiracy to derand in connection 
with the collapse. 

The case is already the 
longest ever heard in a Hong 
Kong court, and has so far cost 
the G overnment more than 
HK£27m to prosecute. Lawyers 
defending Mr Tan and his five 
associates are now expected to 
spend the next three months 
making submissions in camera, 
arguing that Mr Tan has no 
ease to answer. Meanwhile, the 
Jury has been stood down. 

If these submissions fall, 
tiie jury will be recalled, and 
defence lawyers are expected 
to take most of next year pre- 
senting their case. 


This could well take the Car- 
rian trial into the Guinness 
Book of Records, since the 
longest criminal trial pre- 
viously heard was that of 
Angelo Buono, who was found 
guilty in a California court in 
198S on nine counts of murder 
after two years and two days 
in which 400 witnesses gave 
evidence. 

Accused with Mr Tan are Mr 
Bentley Ho, a former director 
in Carrian, Ur David Begg and 
Mr Anthony Lo, A partner and 
a manager in the accountancy 
firm Price Waterhouse, and the 
brothers Bogexlo and Stephen 
Lam, who were directors in a 
group called Bylamson. 

The collapse of Carrian has 
been a major to 

the M alaysian Government, be- 
cause Bumiputra Malaysia 
Finance, the Hong Kong-based 
subsidiary of Malaysia's biggest 
bank; was Cardan's main credi- 
tor. It had debts of about 
HKgStm outstanding when Car- 
rian collapsed. 

Ministers in the Malaysian 
Government have been linked 
with the scandal, which has 
been the subject of investi- 
gation by tiie country’s 
Attorney General. 


Air New Zealand looks 
for maintained results 

BY DAI HAYWARD IN WELLINGTON 


AIR NEW ZEALAND, the 
national flag carrier, is expected 
to show an operating profit of 
well over NZtlOOm (USfSSm) 
for the year which ended in 
March when its results are pre- 
sented to Parliament— its sole 
shareholder — later this year. 

Last year thft enwpany ha/] g 

NZ$iS3m operating profit and 
is expected to be dote to repeat 
ing this despite higher operat- 
ing costs and increased competi- 
tion. 

In July Air New Zealand 
faces even more intense com- 
petition on its domestic routes 
when the Australian-based 
Anaett Airlines begins operat- 
ing between the major cities. It 
Is estimated this could cost Air 
New Zeal and 20 per cent of Its 
existing business. 

As part of its plan to counte r 
this. Air New Zealand is ex- 
panding its international ser- 
vices. Developments include: 

• A weekly Auckland to Frank- 
furt service in October; 

• An Auckland-Dallas-jFort 
Worth-Ga twiek service in 
November; 

• Stepping up its Singapore 
flights to four a week; 

• Proposals for a joint Air NZ- 
Cathay Pacific service to Hong 
Kong; and 

The Auckland-Dallas connec- 
tion will open up tiie American 
South and Midwest and other 
US destinations with connec- 
tions through American Air, 
lines and Delta Air. Air New 
Zealand has inter-line agree- 
ments with both these opera- 
ton. 


New Zealand tourist opera- 
tors are confident the Dallas 
flights via Tahiti will boost 
tourism. Air New Zealand also 
plans to win away a lot of 
passenger traffic now carried 
to the South Pacific by United 
and Continental Airlines. 

With its connections to 
Tahiti and Fiji, Air New 
Zealand itself will launch a 
tourist drive, selling tiie South 
Pacifiic as a package for 
Americans and Europeans 
looking for mote than one- 
country tourist destinations. 
The latest political upheavals 
in Fiji may, however, put a 
partial dampener on this. 

The airline will also be 
going all out to attract West 
German tourists. To make the 
Frankfurt service pay it needs 
to double the number of West 
Germans now visiting New 
Zealand but. as these at 
present number only about 
1 L 000 a year, the airline and 
tourist operators see ample 
room for promotion. 

Air New Zealand may soon 
c onfirm an order for -a sixth 
NZ$2 50m Boeing 747 jumbo jet. 
It already operates five but 
plans for a sixth aircraft were 
postponed during a downturn 
in demand 18 months ago. Now 
the airline is again considering 
pTnrfng a firm order 

The carrier Is still pushing 
for rights to fly between Aus- 
tralian cities but so far has not 
been able to break through the 
federal government's two air- 
line domestic policy. 


C. Itoh takes over top 
sales spot from Mitsubishi 


BY YOKO SHI BATA IN TOKYO 

THE deflationary effects of the 
yen’s appreciation has produced 
a big change in rankings among 
Japan’s six dominant trading 
houses. 

C. Itoh has obtained the top 
position among Japanese trad- 
ing houses in overall sales, 
which totalled more than 
Y14,000bn ($100.1bn) for the 
year to end-March, due to the 
company's strategy to intensify 
domestic sales to cope with the 
yen’s appreciation. 

Sumitomo Corporation advan- 
ced to second from fourth in 
the previous year, while Maru- 
beni came third from fifth. 
However, Mitsubishi, whieh had 
maintained the top spot for 18 
years, fell to fifth place with 
sales of YTUSSbn. 

Mitsubishi’s Surge sales fall 
was attributed to its heavy 
dependence on primary pro- 
ducts, . inctading -erode oiL Mt 
herd by sluggish int ern a ti o n al 
commodity prices and the yen’s 
28 per cent appreciation against 
tiie dollar. 


Mitsubishi said its imports 
declined 47 per cent; exports 
15 per cent, ofidum trade 
33 per cent, and domestic sales 
14 per cent. Its operating profits 
deteriorated by 34 per cent. 
However, its active asset 
management activities in- 
creased proceeds by Y45bn, 
which boosted pre-tax profits 
54 per cent to Y79.49ba. Net 
profits sagged by 8 per cent 
due to a special loss of Y48bn, 
Including Y2lfltn in loon write- 
offs. 

Mitsui's pretax profits soared 
22L5 per cent to Y5482bn, 
thanks to lowering interest rate 
and increased earnings from 
securities sales. The yen's 
appreciation slashed sales by 
Y2,l00bn and oil price faU 
trimmed sales by Y440bn. 

C. Itoh, the largest trading 
house in teams of annual sales, 
suffered *13.7 per cent. faU in 
pre-tax profits to. Y35bn, but its 
net profits rose 19.4 per cent so 
YStm, because of a decline in 
special losses. 


JAPANESE TRADING HOUSE RETURNS 
Rente for year ended Man* W 
Pre-tax 


Net 



Sales 

Ybn 

Change 

% 

YE* 

Chang* 

% 

profits 

Ybn 

°T 

Mtaubtahi 

11,85180 

—23 A 

7757 

+540 

2150 

- AO 

Mitsui 


-21j0 

- 5442 

+235 

751 

+ 0l7 

Sumitomo 

12.92120 

-104) 

4457 

- 3 A 

2277 

+10J 

C Itafa 

14J55JO 

- 7j0 

35*1 

-117 

7J*4 

+175 

Marubeni 

1X86600 

- 75 

30.90 

-25LO 

A07 

+125 

Nbshohval 

7,31855 

-175 

29.73 

-10 

452 

+ 3.1 


NOTICE OF BEDEMFIION TO THE HOLDERS Off 

COMCAST CORPORATION % 

(Incorporated in the Ctmmomvadth of Penasyboaud 

U.S. $50,000,000 

7 per cent. CcnvertRileSiibaitiinatedDdjeiitiires dim 2000 
CaBvatibfc into Ctas A Gamma Stock of Comcast Caprattm 

NOTICE IS HEREBY GIVEN flat QnentGiapaadnbM afectadtomdmu 

-flof h. fWr wutnj HSllh nr rB Hm tedlV I' . uH rMAMlgim 

' ‘ ~ “ at the 


(tbs rDdxntmcO an May 27. 1987 Ota •‘Redemption Dsns’*}, 

irdc ni r ^ pstarfia5percenl:c<fliair|i r te rf pa>ansogat,XMptlic«'nM> 

erorgedtto^ from September A MB6 to to Bite to din i 



AH Bans Debentures, tofetheri . . 

maantag after tbs Rodcmpdon Date, an w bo nmufcitd far payment el (be 
Kcder 4 piianl!itoutteqiedSadafiMiifti 9 af(liBBsDmtDgpariin||andai(t> 
•msk m agents: (a) Banians That CbananhPartmod Hbrne. a9Qld Brood 

Street, London BC2P ZEE, ft) Bangui) i - 

Bendas &A.) roe da Oriental *0. WOO 

l»Hcn*qtBg.39A" 

u 12-14 Rand Fata 

B*nk Corpaaoian 

IcnaTrnrtOa ibB] . ~j_ -JD-L—L.: Ll 1 

jarot cf *c Redemption Price at flic Omxnato TnatOIBce of BankraTSS 

Gnnpuiy in the Borough of Manhattan. The C8zyafKcnrY«dt.aE.tfthB option 

etfteb^^aaie affiosofa^yar to paying again, sftfea to ■ppSaWeJnm 



WOOLWICH 
EQUITABLE 
BUILD ING SO CIETY 
£206,000,060 


1995 

Jo accor da nce with die team s and 
co nditi o ns of die Notes, nodes is 
he r e by giver far the <1— 
months Interest Period from (and 
HKhx&ag) 19th May, 1987 to (bid 
eaetostap I9th August. 1987, the 
Notes vm cany a rate .of interest of 
S% per ce n t, per °nmiw xhe 
relevant Interest foment Date wffl 
be 19tb August, 1987. Thu Coupon 
Amount per £10,000 wiH be 
£222-12, payable ngaW» gun ai der 
of Coupon Ncr. 6 
¥fmiih rn« Biii*r|Jndmrt 
Agent Bank 


THE KINGDOM 
OF BELGIUM 

U4L31MJ0M 

FLOATING RATE BONDS 
DUE NOVEMBER I9K 
la accordant* with the pro-' 
visions of the Bonds, notice is 
hereby given that the Rate of 
J«r the second Interest 
Period from die 20th Nay. 
1987 to 20th November, 19S7 
has been fixed at 7ft per cent 
per annum. 

US$ 250, 000 . on the relevant 
date. 20th November, 
1987. will be USS9.822.92. 

sv ®N5KA handelsbankkn ’ 

W-Q Agent 








Financial Times Friday May 22 1987 

UK COMPANY NEWS 


35 


Alice Rawsthorn on the revival of a former holiday camp company 

Back to work for Corton Beach 


ZN THE 1960s the name Corton 
Beach conjured the " hi-de-hi ” 
world of an. east coast holiday 
camp and one of the fastest* 
moving companies on the stock 
market. In the 1970s It had 
slipped into the ranks of the de- . 
listed “ shell” companies. 

Today it is being revitalised 
as a raini-conglomerate on the 
Third Market 

It has been revived by Mr 
Hike Keen, who has turned it 
into a diversified group with in* 
terests in cars, food, fashion and 
leisure in less than three years. 

Last week the company un- 
veiled its first publicly-quoted 
set of results in which turnover 
doubled to SIBSim and pre-tax 
profits trebled to £742,000. Hie 
share price has almost doubled 
in the last two weeks. 

Mr Keen took control of the 
company after a career as an 
accountant, c ulminating in. the 
finance directorship of Bensons 
Crisps. After years as a cor- 
porate employee, he was eager 
to develop his owjq business. 

Corton Beach suited his pur- 
poses perfectly. In eariy 1984, 
when Mr Keen surfaced, it was 
a shell company. Its name tar- 
nished by past scandals, with 
400 shareholders and £100,000 
in cash. He bought 29-9 per 
cent' for £35,000 and sought a. 
quotation on the over-the- 
counter market. 

His strategy was to build up 
M a sizeable group with in- 
terests in at least three main 
areas.** He began in the indus- 
tries he knew best: cars, by 
acquiring a string of motor 



Hike Keen, chairman of Corton Beach 


dealerships along the M62 
motorway; and food, first pur- 
chasing « scampi business, then 
diversifying into prepared 
meats and freezer centres. 

As an accountant Mr Keen 
prefers to concentrate on the 
aspects of business he knows 
best, imposing financial con- 
trols, delegating management 
to more entrepreneurially 
minded executives. 

When Corton Beach acquires 
a new company it tries to en- 
sure that tiie individuals who 
have built up the business stay 
with it. Mr Joe Jacques who 
ran the prepared meats com- 
pany now heads the food 
division; while Mr Paul Dixon, 
former owner of a motor distri- 


butor purchased in January is 
in charge of the motor interest 

Leisure was chosen as the 
third area, beginning with a trio 
of amusement arcades in the 
west country. It has since 
moved into the distribution of 
amusement machines, with the 
acquisition of Deith Leisure 
■earlier this year, and intends to 
expand into machine manu- 
facturing by purchasing the 
BWB Group. 

“As a small company we 
cannot afford to be vulnerable 
to a sudden downturn in any 
individual business,” said Mr 
Keen. “If the fish market 
suffers, we have to be able to 
turn to cooked meats or freezer 
centres. If demand for Nissan 


DM250,000,000 

'DAS 100,000,000 

MaOnaB.V. 

MafihaB.V. 

2 % Bearer Bonds 1966/1993 4% Bearer Bonds 1986/1996 

-• 

unconditionally guaranteed 
and with Warrants attached of 


PetrofinaSA, 


reflectively. 

I In addition to the banks mentioned in, and in accordance with, 14 (Z) of the Conditions of Warrants of tbe j 

[ tibave-mcntioaed.iHuesthcfblkwipgbaiiks have been appointed as Sub-Warrant Agents^. jj 

.• - = •• •• 

Bank Brussel Lambert N.V., Brands 

Basque Paribas Belgique SA., Brussels 

Generate Bank, Brussels 
' * Kredietbanfc, Brussels 

FtankfintamMiria, May 1987 

on behalf ofTetrogna S.A. 


j!' -iL,.' . 

.CSFB-Effectenhank 

Warrant Agent 


.. ” • 


cars falls, we must rely on 
Audi. 

One of bis golden rules la to 
concentrate on acquiring buoy- 
ant businesses with proven 
profitability. 

“There is always the risk 
with a recovery situation that 
you will not be able to turn the 
business around,” he said. 
“ Even if a proven business 
fails to grow at least it will pro- 
vide additional sales and 
profits.” 

Corton Beach broke this rule 
in 1985 when it embarked upon 
the acquisition of the Tern 
Group, a loss-making textile 
company on the main market 

Initially Mr Keen planned to 
reverse into Tern. He 
approached the company armed 
with M the Ext el cards. 
McCarthy report and a fresh 
set of accounts ” assuming that 
he would be able to steer it to 
recovery. 

As is so often the case. Tern 
was in much more of a mess 
than was suspected. As Mr Keen 
put it the company had two 
choices: “to walk away or to 
stay end sort it out” 

Mr Keen decided against a 
reverse takeover and, having re- 
assessed the state of Tern, con- 
cluded that there was only one 
division worth saving, that was 
Propeller, a shirt importer and 
distributor, and all the other 
interests were closed or sold. 

Propeller has gone from 
strength to strength. It should 
be floated on the Third Market 
later this year. 

Corton Beach aims to gradu- 
ate to the USM, and then to 
the main market as quickly ar 
possible. Buoyed by forecasts 
of doubled profits in the pre- 
sent year Mr Keen is also 
intent upon pursuing more sub-' 
stantial acquisitions. 

“Until now our acquisitions 
have, of necessity, been small 
and strategic,” he said. 

“ We have been restricted to 
looking at family businesses, 
often without proper controls 
or accounts, which can find it 
difficult to integrate with the 
culture of a larger group. It 
will be much easier to be able 
to buy bigger.” 


E. UPTON AND SONS, Middles- 
brough-based operator of 
department stores, said negotia- 
tions are at an advanced stage 
for the acquisition of the 
ordinary share capital of 
Southern & City Property 
Group, retail property 
developers. 

WAYNE kEBB (USM-quoted 
electronics manufacturer) has 
purchased Alpha Repeater of 
Southwick for around £250,000. 




• 9Z - 






L.M; » . 






mf 




j?o succeed in the paper and board 
business, you need an organisation that’s 
cut out for the job. 



ffe have ensured thatKNP Is in the ng/rt 

< shape for the 198C& and beyond by concen- 
’traling on our strengths. This has reinforced 
/kNP* s Intematfona/ teactershlp kiftskeysoctors 

' of the peper and board industry. Andwitnthal 

I move has come success: earning power has 
/increased greadS? white shareholders’ equity 
J and guaranteed capital an now showing 
f substantial growth. 


I KNP enjoyed a highly successful 1086 thanks to I 
J ns expend in the production and distribution 

I of Its mein products: boards, packaging 

iucts and high-grade graphic paper. 

. _jndhrg sales and profits are the deserved 

I rosutt of the recant years' efforts to create 


economies of scale throughout Its operations. 

Of course, top-class products, technological 
excellence and an outstanding sales network 
are not enough in themselves. Success in tfifs 
Industry also cads for policy-makers with vision, f 
employees with a commitment to the business, ! 
and an organisational structure with the right 
atmosphere. KNP has brought these ingre- 
dients together to create an organisation cut 
out for success. 

if you’d like to know more about the KNP 
. success story. cOp the coupon and send it to 
KNP NV,P.O.Box102Z 6201 MH Maastricht 
The Netherlands. 


please send me KNP’s financial report andcompanyprofUe^ 


Name 

Company. 
Position — 


Address. 


Country. 


Send this coupon to KoninkTrjke Nederlandse Paplerfabrieken NM, 
RO.BoxlCOZ 6201 MH Maastricht. The Netherlands. 


Polly Peck 
untroubled 
by Turkish 
TV moves 

Folly Peck, international 
trading group, said yesterday 
that marketing and sales of 
television sets made in 
Turkey by its Vestel subsi- 
diary would not be disrupted 
by a move to revoke Its 
manufacturing licence. 

The Turkish Supreme 
Board of Radio and TV has 
moved against Vestel and 
eight other companies for 
alleged substandard produc- 
tion of radio and TV equip- 
ment. 

Ankara’s Ministry of Trade 
and Industry, however, has 
intervened to keep the com- 
panies in business. 

The action Is part of a 
Government move to clarify 
standards in the domestic 
electronics industry. 

Consumer Electronics pro- 
fits *4f £4Jm accounted for 
nearly G per cent of Polly 
Peck's pre-tax total in 1986. 

Polly Peck shares re- 
covered from early weakness 
to dose 2}p high at 285|p. 


United Newspapers 
has 273% of Extel 

United Newspapers has raised 
its interest in Extel, the finan- 
cial and sports information 
group, to 27.9 per cent 

Samuel Montagu, the mer- 
chant bank, bought 450,000 
shares ( a 0.9 per cent stake) in 
the market for 481p, equal to 
the cash alternative in the pub- 
lishing group’s £250m takeover 
hid for Extel. 

Extel shares lost lp to 493p, 
compared with the 479p value 
of United’s share offer based on 
the latter’s price of 465p, down 
Sp. 


ANNUAL MEETINGS 


The following reports were 
made at AGMs held yesterday. 

John Lalng: There were posi- 
tive and encouraging signs that 
1987 would he another good 
year. 

Johnson Group Cleaners: 
Company expected to achieve 
further growth this year despite 
the possible effect of adverse 
movements in prevailing 
steding/dollar exchange rates. 
Board was confident of further 
progress in the US and it was 
intended to continue the policy 
of selective acquisitions. 

MY Holdings: Company made 
substantial progress last year 
and with the acquisition of 
Sharp Interpack now had in- 
creased opportunities for fur- 
ther profitable growth. In the 
first four months of 1987 trad- 
ing had continued at a good 
level and this was expected to 
continue for the rest of the 
year. 

The Weir Group: Company 
had made a satisfactory start to 
the year with profits in the first 
quarter well up to expectations. 

Sharpe & Fisher: The DIY 
market continued to grow and 
Sandfords had benefited as a re- 
sult of new outlets. Sandford 
was expected to have another 
excellent trading year. The sig- 
nificant rise in construction acti- 
vity had continued into 1987 
with sales to end April up 20 
per cent on last year. Outlook 
for the whole of 1987 was better 
than it had been for several 
years and that side of the busi- 
ness was expected to have an 
excellent trading year. 

Waterford Glass: Wedgwood 
was trading very well and over- 
all performance was already ap- 
preciably better than last year. 
Group was experiencing weak 
crystal sales in its Irish, UK 
and other European markets. 
Crystal revenues in US likely 
to exceed those for 1986 but 
company was concerned at 
weakness of the dollar. 

Walter Lawrence: First four 
months trading of the current 
year had been very satisfactory. 
The board re m a in ed, extremenl; 
confident that 1987 would be a 
year of further advance. 

Wm Morrison supermarkets: 
Current trading was producing 
sales some Si per cent in ex- 
cess of those for the first 
quarter of last year and allow- 
ing for inflation continued to 
reflect reasonable volume 
growth. Chairman was confident 
they could improve on this per- 
formance throughout rest of the 
year. 


IN BRIEF 


SHIRES Investment: Net asset 
value 24S3p (228.13p) at March 
31 1987. Proposed final divi- 
dend 5p (5.75p), making I4p 
(1S.25P). 

HORAN TEA HOLDINGS: The 
directors consider that, despite 
the current fall in tea prices, 
the overall group result for the 
year to June 30 1987 will pro- 
duce a profit on ordinary activi- 
ties in excess of last year. An 
interim dividend of lOp (73p) 
is being paid. The Trans Global 
Group has traded satisfactorily, 
particularly within the air 
freight division. 

STAR COMPUTER: Company 
will not now proceed with the 
purchase of Orchard Manage- 
ment Services. Parties have, 
however, substituted a market- 
ing agreement. 


CAZIPLO 

Cobb di 8dpom«> «<' B# PiwAid* Ltnfearda 
Lsncian Brunch 
ECU 50.000.000 

Hoofing Rolf Duot CurrnncrDipaiHay 
iUctipli Duo 1989 
If* new Hot* oJ for hnW I May 

23, 19£7 u Aoguw 22, 1987 »*S t* 
21.84*43% pa- Im«nw payoUe 
NZ52039iyS dot NZ$500,000 no*. 

6/ G&aci. NA. CSS! D*pt 

May SLUMP 



Public Limited Company 


COMMENTS BY THE CHAIRMAN -SIRDEREKPALMAR 


Growth in beer volumes has resulted in a good performance by our 
drinks and pub retailing business. Beer market share has increased. 
Lager continues to grow and now accounts for more than half of our 
beer sales. 


Trading in our leisure activities has also been good particularly in Coral 
Racing and in Crest Hotels, both in the UK and overseas. Our 
amusement machine business has however not achieved the same level 
of growth. 


Since the end of the half-year our agreed bid for Horizon Travel pic has 
been declared unconditional. The terms will be satisfied by the issue of 
not more than 7.6m Bass shares representing 2.3 per cent of the existing 
Bass ordinary share capital. This acquisition is a further development of 
our growing leisure activities. 


This year Easter falls in the second half-year which has started well. We 
look forward to continuing growth in our businesses for the rest of the 
year. 


INTERIM RESULTS 

to 11th April 1987-key figures 

(unaudited) 


28 weeks 

28 weeks 

52 weeks 

to 11.4.87 

to 12.4.86 

to 30.9.86 

£m 

£m 

£ra 


Turnover 

Brewing, drinks and pub retailing 
Leisure 


1,133.0 

3803 


1,046.8 

3213 

1,966.9 

742.8 



1*513.3 


1368.3 

2,709.7 

Trading Profit 






Analysed: 

Brewing, drinks and pub retailing 
—operations 
—surplus on disposal of 
fixed assets 

. 133.7 

8.4 

142.1 

12L1 . 

8.4 

252.8 

129.5 13.0 

265.8 

Leisure 
-operations 
-surplus on disposal of 
fixed assets 

15.4 

0.4 

15.8 

6.4 

3.5 

57.4 

9.9 4.4 

61.8 



1573 


139.4 

327.6 

Profit before taxation 


147.4 . 


130.1 

310.4 

Extraordinary item (Note) 


13.9 


- 

-53.5 

Ordinary dividends - per share 


4.8p 


4.2p 

17.0p 

Earnings per ordinary share 


29. 4p 


25.5p 

59. 5p 


Note: 

Surplus arising from disposal of the United Kingdom holiday centres. 


Registered Office: 

30 Portland Place, London WIN 3DF 


This advertisement it Issued in compliance with the requirements of the Council of The Stock Exchange, 
h does not conaiaias tat invitation to the pubfc to subscribe for shorts. 



Allied-Signal Inc. 

(Incorporated with limited liability in the Slate of Delaware, United States) 


Share Capital 

Outstanding 

Authorised and fully prod 

500,000,000 Shares of Common Stock of $1.00 par value 174,423,584 
20,000,000 Shares of Preferred Stock of no par value — 


Allied-Signal is an international advanced technology company with headquarters in Morris 
Township, New Jersey, United States. It has three main businesses: aerospace/dectronics; 
automotive; engineered mat eri als. 

Application has been «n«te to the Council of The Stock Exchange for admission to the 
Official List of the shares of Common Stock outstanding and 15,068,355 shares of Common Slock 
reserved for issue. Listing particulars relating to Allied-Signal are available in die statistical 
services of Statistical Services Limited. Copies of the listing particulars may be obtained 

during r™! business hours up to and inducting 27th May, 1987 from the Company Announce- 
ments Office of Tbe Stock Exchange, Old Broad Street, London EC2P 2BT and on any weekday 
(Saturdays and public holidays excepted) op to and ind u di ng 5th June, 1987 from: 

County ISatoeA Coeatj Securities Limited 

Drapers Gardens Drapers Gardens 

12 Throgmorton Avenue 12 Throgmorton Avenue 

London ECZP2ES London EC2P2ES 

22nd May, 1987 









Financial Times Friday May 22 1987 


UK COMPANY NEWS 


Underwoods shows 22% advance 


Underwood* the multiple re- 
tail cnecoist which terminated 
merger talks with Woolworth in 
March this year, yesterday 
announced a 22 per cent In- 
crease from £2J54m to fiLllm in 
pretax profits for the year to 
March SI 1887. This was In line 
with market forecasts — around 
£3An— following the confident 
October interim statement. 

Mr Hazy Woolf, the chairman, 
said tile current year had 
started with promise. Trading 
in the provincial stores, now in 
their second year, was particu- 
larly encouraging and there 
was room for growth. 

The _ company intended to 
maintain its expansion into 
towns in the southern half of 
E ngl and, as well' as centra] 
London and the suburbs. 

The majority of new stores 
did not begin trading until late 
in the year and, as a result, 
sales were not quite up to ex- 
pectations, Ur Woolf said. The 
drop in tourism in the first 
seven months of the year also 
bad some adverse effect. 

Of the 11 new stores opened, 
five were in provincial areas, 


two in London suburbs ud 
four in central London. AU 
were trading at or above ex- 
pectations- Ten stores were 
refurbished during the year. 

The company expected to 
open 10 new stores in the cur- 
rent year, adding 35,000 sq ft 
of net selling apace. Two new 
stores were already opened and 
two more had been secured. 
The board was also actively 
seeking other opportunities to 
expand the group. 

Turnover last year rose from 
£87 .57m to £47JSm and gross 
profit was up from £LS.28m to 
£L6.75m. Distribution costs in- 
creased by £2fim to £LQJ>£m, 
and administration costs were 
op from £2.61zn to £3-25 nz. 
Other opera ting income amoun- 
ted to £127.000 (£207,000) 

leaving trading profits of 
£3.07m (£2£2m). Net interest 
and other income receivable 
was £40,000 (£274.000 charge). 
With the proportional tax 
charge down from S3 per cent 
to 27 per cent at £840,000 
(£835,000) earnings per 6hare 
are up from 6.8p to 8-Sp. 

The dividend is raised from 


L85p to 2£p with a proposed 
final of Up. 

Also reported yesterday was 
tiie resignation of Mr Ri c hard 
Belt, deputy managing director 
»nd trading director, who was 
second in command of Under- 
woods' operations- 

According to Mr Brian 
Kerner, group managing direc- 
tor, “Mr Bett, like all of the 
hoard, became very excited at 
the prospect of Joining up with 
Woolworth but wtu«r these 
negotiations failed to produce 
this result he was unable to 
motivate himself further and 
we have therefore agreed to 
part on amicable terms.** Mr 
Bett, who spent six years with 
Underwoods, has been replaced 
by Mr Dennis Casey, formerly 
sales director. 

• comment 

Post-Merger-Tenaion appears to 
have afflicted more than Mr 
Bett. The City was disappointed 
with these figures, especially the 
on&sixth fall in trading margins 
and the shares fell Up to 198p. 
Distribution costs, from which 


pr ope rt y gains of £252,000 
(£200,000 last year) ought to be 
stripped out, rose to almost 22 
per cent of turnover badly dent- 
ing the gross profit improve- 
ment Rates and rent rises are 
apparently to blame as is the 
number q nrt timing of new i 
openings. The large number of ; 
rent reviews due over the next 
two years suggests that this 
account could continue -to he a 
problem area. The good news 
was that the out of town stores 
(sale per sq ft of £238 against 
£377 for the company overall) 
are showing 20 per cent sales 
rises this year so far. If Under- 
woods can convince that Its 
formula can be successfully ex- 
ported out of Central London 
then the longer term begins to I 
look less constricted by the 
shortage and cost of sites and 
the real danger of cheek by 1 
jowl oversaturation (called i 
“ shooting yourself In the foot ” 
In the trade). On forecasts ! 
shaved to £3. 8m, Underwoods 
now trades on a prospective p/e 
of 22, which seems overblown 
imT y g g there really is someone 
out there willing to make a bid. 


Priest 

Mariam 

doubles 

profit 


Nu-Swift doubles 
after UK growth 


NMC Investments makes £2.86m acquisition 


NMC Investments, the specialist 
packaging group In which the 
Saatchi brothers have a substan- 
tial holding, is buying A. J. 
Blngley, a privately-owned flex- 
ible packaging company, for 
£2 .88m. 

The acquisition will be satis- 
fied by the issue of 1.47m new 
shares, representing 3.85 per 


cent of the enlarged issued 
share capital. Blngley share- 
holders will be offered 18 NMC 
shares for each ordinary share 
in Blngley. Alternatively, they 
can take £35 in cash for each 
Blngley ordinary share. 

The directors of NMC said 
that the acquisition represented 
an attractive opportunity to 


acquire a company with a 
reputation for inventiveness In 
the field of flexible packaging. 
They saw opportunities for cost 
savings which, when coupled 
with an improved marketing 
effort, should improve profit- 
ability In the short term 
Bingiey's current product 
range includes standard pack- 


ing for the high-volume point- 
of-sale market, added-value 
flexible packaging for the retail 
trade and several new packing 
products designed far specialist 
markets. 

Zn 1286 Bingley incurred pre- 
tax losses of £76.000 on turn- 
over of £7.41m. Net assets ax 
year end amounted to £2.61 m. 


Priest Marians Holdings, the 
property investment and devel- 
opment group which is cur- 
rently engaged In bid talks 
for GR&, yesterday announced 
an increase from £585,000 to 
£L19m In pre-tax profits for 
the year to February 28 1987. 
The figures include the results 
of Lincroft Kilgour as an asso- 
ciate from August 1 1086 to 
November 30 1986 and as a 
subsidiary since December 1 
1386. 

Mr Simon FusseZ, the chair- 
man, said he had every reason 
to view the current financial 
period with considerable 

Turnover last year was 
£2.91m and gross profit was 
£lm. Other operating Income 
amounted to £L68m (£693,000) 
while administration and dis- 
tribution expenses were £L02m 
(£116,000). Net interest pay- 
able and similar charges took 
£474,000 (£9,000 receivable); 

tax took £505,000 (£155,000) 
and minorities £28,000 (nil). 
There were extraordinary 
charges of £29,000 (nil) after 
tax. 

Earnings per share emerged 
at 9JSp (I3.5p) for the forecast 
L5p dividend (1.4p adjusted). 

VAUX GROUP: Zn response to 
the recent rights issue 7,10 L505 
new ordinary shares (approxi- 
mately 90 JL per cent) were 
taken up, the balance being sold 


No-Swift ltadnatrien the fire 
detection group, has more 
than doubled 11a I960 pre-tax 
profits to fl 4.68m al ter a good 
performance' from its UK opera- 
thus and progress at its new 
French acquisition. 

Turnover almost quadrupled 
from £33.3.1m .to £l2&27m, -and 
earnings per share nearly 
trebled from 7.48p to 2L66p. 

Nu-Swift more than doubled 
its interim profits to £&08m. 
largely because of the merger 
in January 1986 between its 
French subsidiary - Generate 
Incendie Protection et Secuxite. 
and Compagaie Centrale 

Directors said the company's 
UK trading operations had in- 
creased its pre-tax figure by 
24 per cent for the year. In 
France, cost savings policies 
had been implemented to return 
Si cli— which had been barely 
breaking even for several years 
—to a more acceptable level of 
profitability. 

The company bad also bene- 
fited from relaxation of French 
price controls. Reorganisation 
within Society Xndustrielle pour 
le Development de la Security 
a 62.2 per cent subsidiary of 
Sicli, was now complete, and 
after a difficult first half ft was 
trading profitably. 

Trading results for the first 
months of 1987 showed progress 
was being maintained, and pros- 
pects for the year were en- 
couraging, said the board. 

Tax rose from £8m to £3J93m 
and minorities from £2,000 to 



I 

I 


owisCo 


riTI 


tperf 





the 


yirnmffrglffTi 


2 to 1 this year? 

Compaq sales are up 47°/b. Industry sales increased 19°/o. CAnd what's more, our profits 
for the same period increased 142°/oJ The demand for Compaq Computers is at an all time high. 


C Source: Media General; last reporting period.) 



ppomem 
uj [uuosjad 

pasueApeisousqi 

a «8£ oaaasaa owdwoa 


V 


1387 CowpaqOwiputw Corporat i on. All rights rwatwcL 


Compaq Freepost CBS3333 Bristol BS14VP. Telephone 0800 444 123 




UE’LL NEVER CEASE TO AMAZE YOU. 


£L22m. TTtere was an .extra- 
ordinary debit of £L78m, com- 
pared with £415,000 i u 1983. 

A recommended final divi- 
dend of 3J2Sp (2J23p) makes 7p 
for the year, compared with 
3£p last time. 

• comment 

NUrSwifa profits growth.! 
though spectacular, came as 
little surprise in the wake of 
the strong Interim results. Much i 
of it refloats further progress in 
increasing the efficiency of the 
UK operations, and the rest 
from the application o fslmflar 
methods in France. The sheer 
stam of the French operations 
suggests that the scope for fur- 
ther efficiency gains there is far 
from exhausted, particularly as 
fire extinguisher production is 
concentrated at Sicli. Some 
£21m to £22m could be in sight 
for the current year, but rising 
tax charges and minorities will 
make the advance less spectacu- 
lar at the bottom line. Earnings 
of 24p to 25p would produce a 
prospective price/eantings mul- 
tiple of 14 at yesterday’s 340p, 
a rating which seems suitably 
to reflect a compromise between 
an exciting management and a 
stodgy market. 


RADIO CITY (Sound of Mersey- 
side) has disposed of the 
memorabilia owned by Beetle 
City for a sum of approximately 
£200,000. Expected that Seel 
Street property. In which the 
memorabilia was housed, will 
be sold shortly. 


Triefusup 
to £1.35m 
as margins 
Increase 

Triefqs, which to engaged in 
the marketing, processing and 
valuation of diamonds, in engin- 
eering, and contract drilling, 
yesterday reported a rise of 
more than 70 per cent in pre- 
tax profits for 1986 and 
announced a proposed one-fpr* 
25 scrip issue. 

Profits moved up from 
£793,000 to £1.35ra on turnover 
ahead from £2£-51m at £25 .2m. 
The proposed dividend for the 
year is lifted from O.OSp to ip. 

The directors said the in- 
creased profits stemmed more 
from increased profitability in 
some operations than from a 
major increase In volume and 
some reduction in expenses. The 
company’s efforts to rationalise 
and reorganise the group have 
largely been completed 
They reported that in England 
the balance has continued to 
shift from trading to manufac- 
ture. The company was explor- 
ing the feasibility of increasing 
the capacity of the manufactur- 
ing operation in order to 
strengthen its presence and as 
part of the bate for its efforts 
to increase its share of the 
European market generally. 

Tax accounted for £478,000 
(£454,000) and minorities 
£280,000 (£156.000). Extra- 

ordinary credits of £136,000 
(£18,000) comprised the profits 
on the sale of a subsidiary com- 
pany. Earnings per share rose 
from lJBp to (L25p. 


Former MSCC chairman 
buys stake in Barlows 

BY PAUL CHEESBUGHT, PftOpQtTY CORRESPONDENT 


MR NICHOLAS BERRY, ousted 
u chairman of Manchester 
Ship Canal after the unsuccess- 
ful defence against the 
Highams takeover bid, has 
found a new outlet in a com- 
pany which will concentrate on 
north west England property 
development 

Joined by Dr Isidor XZananer, 
a former Manchester ship 
Canal director, mid Mr Jeremy 
Weston, who handled Man- 
chester Ship flmuri nffflira at 
Dunlop Haywood, the chartered 
surveyors, be is moving into 
Barlows, the former textile 
packing company which has 
been developing its property 
Interests, . . 

Samuel . Montagu, the mat- 
chant bankers, yesterday an- 
nounced that with tite agree- 
ment of Barlows’ existing direc- 
tors, the company's^ finances ' 
and equity are being restruc- 
tured through a rights issue. 

The effect' will be to give 
Mr Berty, Stan croft — his pen- 
son al company — and their 
associates, 29.4 per cent of the 
equity in Barlows, which, at 


the end of last year, bad net 
assets just short of £lm. 

But Mr Berry said yesterday 
that he was not cutting his links 
with Manchester Ship <>««>_ 

Through Harraps, the pub- 
lishing house, which is 60 per 
cent owned by Staacroft, Mr 
Berry leads a group of seven 
independent shareholders col- 
lectively retaining 25 per cent 
of the Manchester Ship Canal 
equity. 

The restructuring at Barlows 
involves a subscription of 

500.000 new shares at 500p a 
share. Staacroft, Mr Berry and 
associates will take 228,000. 
white Samuel Montagu has 
placed tire remainder, of which 

65.000 have gone to London and 
Edinburgh Trust 

There to also a one-far-two 
rights issue for existing share- 
holders, again at 500p a share. 

The effect will be to give 
Barlows a capital infusion of 
£3.22m. ' 

Shares In Barlows were 
suspended last Monday, pend- 
ing yesterday’s announcement 
at 550p. 


THEBEAUF0RD GROUP 
PX.G 

RESULTS IN BRIEF 


BflrafeJSUlMcaaihr 


ft mover 
Prafi before Tax 
Dfaridmds 


am isu 
am £ooo 
sun am 

W 618 
Up 2JB25P 
SJQp Tfip 


W1-H a t_s_ I vflL B- 1— a- J. 

OBmpUUUlUQBIBDLiUiiiiWmi 

CMnambfc Geoffrey Gmrfocd. 


•Dhndflndsfafl»?8ariiicraesedby33% 

•SiiOTgontebookpraftfiBoaidooofldeoce 
for the Allure. 

GopiBSO^ttefiqjadrodAuxBodsaeiWiiiddDAtBii; 

TheSecretay, 

1fcBao^WGraq)H^I,Ben^xdHbiBa, 

Sa psnfiMBoniCfadfarfBb 

WfestWareBDfflm 


TRADING PROFIT EXCEEDS 
£3 MILLION FOR FIRST TIME 


1966/87 

1985/86 



£m 

SMI 

Em 

33.7 

+ 

«% 

M 

2 JI 

+ 

13% 

28p 

21 .6p 

+ 

30% 

»P 

8 P 

+ 

12 %% 


YEAR ENDED 2W2E7 
Turnover 
Trading profit 

Earnings per share 
Dividend 


* Excellent growth from two main divisions . . . 

* Acquisitions mads since year end and further under 
negotiation . .. 

* Sate of two toss-making companies achieved toducfim 
withdrawal from ferrous forging industry . . . 

* Confidence In future... 

DavW J. Mead, Chairman 

Gmup ■ mM B w: Manufacturer* of l n w i ie n m mtaan . ■ 

BaeMcafaBdmaaiRntoOMMfc- 


Worcestershire WR98DS 

”**~*— ~ »— i — — rf nt nfrnmffliEirirti r iiM E iwniwE i t . n.i , ., . .. , ■ 

■mqwHMRpM rtm ■- —— rM ir^rMwi. 

fiqpl E , 1 1 * f!E ElDfE lH, tl» |E|| T HW , «-,W-UR,MDEI«ll,l, e 


J 


to 








r ^$t 










f »:tirni±3 


Another successful year 

BASF a major international chemical company 
renowned for its trail-blazing scientific and 
technological achievements, is proud to announce 
its financial Ftesults. 

For BASF Group, 1986 proved successful as 
another year of strong financial reinforcement new 
venture integration; increased sales volume; and 
continued, far sighted commitment to research, 
development and capital expenditue programmes. 

The decline in Net Sales was due wholly to 
extraordinary international factors, and the drop in 
profits was almost exactly equal to the down- 
valuing of our oil and gas inventories. 



* > 


1: 


W t \ \ 

f tMK \ 


BASF Group 


BASF AG 


Net Sates 
After-Tax Profit 
Capital Expenditure 
Employees 


Net Sales 
After-Tax Profit 
Capital Expenditure 





DM Million 1986 

40,471 

910 

2,657 

131,468 


DM Million 1985 

44,377 

998 

2,456* 

130,173 


% Change 

- 8.8 
- 8.8 
+ 8.2 
+ 1.0 


7 

20,461 

- 8.5 

0 

646 

+ 9.9 

2 

884 

+29.2 










^hwsib 




Intensified research and 
development 

The Ftesearch Expenditure budget of over DM 1.7 
Billion, considerably up on 1985, reflects the Group’s 
belief that the long- term view is paramount 

Its general thrust can be gauged from the fact that 
net sales of higher value-added products account 
for nearly 60% of total turnover. 

Highlights were the development of methaayiic 
acid and methyl methacrylate monomers; the 
inclusion of polyether ketones in our range of high 
performance engineering plastics; the new optically 
active phytohormone herbicides (Duplosan grades) 
which contribute further to environmentally 
compatible crop protection; and developments in 
advanced composite materials, such as the carbon 
fibres used in the Beechcraft Starship 1. 


ms' 1 * 


r . ;v 


Increased 
capital expenditure 

Our Capital Expenditure programme amounted to a 
very significant DM 2.7 Billion. 

Among its most notable achievements was tie 
doubling of acrylic production capacity via the 
opening of a second plant in Reeport USA 

Yet further capacity will come on stream in 1988 
when the new Ludwigshafen plant is opened. 

Commitment to growth 

Above all, underlying BASF Group*. 1986 Ftesults is 
a single minded commitment to growth. 

The Groupfe philosophy is based on the long term 
vtew, the conservative valuation of assets; and the 
need for a continuing high rate of return from all 
operations. 

Its overall viewpoint is strongly international - 60% of 
Group Sales now come from outside Germany. 

RA ep IN THE UK: BASF UNITED KINGDOM LTD. BASF CHEMICALS LTD, 
I^ cSatings ^ !^ ltd. cheadle colour a. CHEMICALS ltd, comwrbc 
HVFCW viATICW SYSTEMS LTD (A BASF & SIE&CNS CONtfANY). ELAS TOGRAN UK LTD. 

fftrrzsoas dodge & olcott (ux) lid, knoll ltd, wintershall (uk.) ltd. 













' <• 




























*/£■' ; v--/ ’ ‘-V 


Beechcraft Starship 1. 


ASF 


ji* r ! ' 








38 



EI^CTRA INVESTMENT TRUST PLC 


AJS FAMILY RESTAURANTS LIMITED 


Men Jones and Jane Pickard 


on 


Funding far this wentae was arranged by 
Uectra Investment DustPLC 

and provided by 

Clectra Investment IhistPLC 
Globe Investment Host HC 
CINbidiistrialjhivestmeiits limited 
May 1987 


This advertisement is issued in compliance with the requirements of the 
Council of the Stock Exchange. 

Dencora pic 

(Ineorpomled in England under the Companies Acts 1948 to 1976 — No. 1519031) 

Introduction of the whole of the issued share capital to the Official list 

and 

Proposed rights issue, of 8,442,120 6.25 per cent. Cumulative Convertible 
Redeemable Preference shares of £1 each at par 

Dencora pic Is the holdmgcompany ofa group which initially concentrated an i nvestm ent in industrial 
and warehouse property. This has been extended to include office and retail propert y . The group now 
paces increased emphasis on commercial p roperty trading and expanding its house-bulldmg division 
where special importance is placed on sheltered housing. Group activities are concentrated in the 
rapidly expanding East AngGan area. 



ference shares will commence on 17th June, 
any have been circulated in Extel Statistical Services. Copies of. the 
i copies of the latest audited consolidated accounts for the year ended 
may be obtained during usual business hours on any weekday (Saturdays and 
public holidays excepted) up to and including oth June, 1987 from: * 


120 Mooi 
Loudon 


& Drew Limited, 


M 6XP 


Dencora pic, 
Dencora Houses 
Bljborgate, 
Becdes, 

Suffolk NR34 9TQ 


and up to and including 27th May, 1987 from Company Announcements Office, Quotations 
Department, The Stock Exchange, London EC2P 2BT, for nd lrct km only. 

22nd May. 1987. 


Financial Times 1 Friday May 22 1987 

UK COMPANY NEWS 


Wordplex cuts loss and 
makes £9.3m cash call 


BY ALICE RAWSTHORN 

Wordplex, the troubled office 
automation group, yesterday 
announced reduced pre-tax 
losses from £3. 19m to £2J3m 
in 1986 and unveiled proposals 
for a refinancing package and 
a new business strategy. 

The company intends to raise 
£L6m through a placing of 
shares, arranged by Close In- 
vestment Management. and 
£5.7 m in an ll-for-10 rights 
issue at 50p a share. It has also 
secured revised banking facili- 
ties to include a £4m medium- . 
term loan facility. The com- 
pany’s share price fell by lip 
to 120p on the announcement 
yesterday. 

The proceeds will strengthen 
the balance sheet which has 
been weakened after two years 
of losses and stringent cuts. 
The package has been organised 
by Octagon Industries, manage- 
ment services concern specialis- 
ing in tiie information techno- 
logy field, which was drafted in 
earlier this year. Octagon also 
developed the new business 
plan. 

Through this Wordplex will. 


build on its existing customer 
base by introducing its own new 
products and integrated systems - 
with other manufacturers, and 
by augmenting its consultancy 
and support services. 

Hr Geoff Bristow, managing 
director of Octagon, will become 
deputy chairman, taking over as 
"chairman when Mr John Hey- 
wood resigns in September. Mr 
Jeremy Thomas, formerly man- 
. aging director of a subsidiary of 
Raeal, will become chief execu- 
tive. 

Wordplex went public in 1984. 
when the electronics sector was, 
at its most fashionable. The 
company’s share price began to 
fall almost immediately after 
flotation. The fall accelerated 
when it ran into problems and 
lapsed into losses. 

After a series of cuts Word- 
plex broke even at a trading 
level in the second half of 1986. 
Turnover for the year rose to 
£46 -94m (£4453m) and gross 
profits to £ 19.38m (£19.2lm). 
Interest charges were £L.86m 
(£L36m), and the cost of stock 


Computer People shares 
to have weighted ballot 


write-offs and unexpected 
closure casta was as an 
extraordinary debit of 
(£974,000). 

The loss per share came out 
at 22p (32L6p). 

• comment 

To any observer of the elec- 
tronics sector in the 1980s the 
story of Wordplex is all too 
familiar. The company sailed 
onto a receptive stock market, 
buoyed by a booming market, 
only to stumble into problems 
when the electronics slump 
began to bite. A high cost base, 
delusions of global grandeur 
and an inexperienced manage- 
ment team hardly helped. 
Shareholders should 
themselves lucky that the com- 
pany has come through it all 
with its trading base intact The 
client list is still strong, costs 
have been cropped to a more 
realistic level and the strategy 
of moving away from the mass 
market into clearly defined 
niches seems to make sense. 
The company may break even 
before tax this year, but in- 
vestors will have to wait until 
1988 for profits to filter 
through. But having bung on 
for so long . . . why not wait a 
little longer? 


Unigate to sell its 
engineering interests 


UNIGATE y e s t e rday announced 
a decision to sell off its five 
engineering subsidiaries as part 
of an effort to concentrate on 
core business areas of tran- 
sportation asd the manufacture 
and di s tr i b u tion of food. 

The companies, from the 
Giltspur and Wincanton divi- 
sions of the group, account far 
some 5 per cent of the total 
operation. Together they pro- 
duce sales of about £60m 
annually. 

Mr John Clement, Uni gate 
chairman, said the engineering 
companies would perform better 
within a group in which there 
was a more logical fit. 

All five companies are profit- 
able, and Unigate expects they 
will be sold indivldtiaUy rather 
than as a group. 

Mr Daniel Hodson, the finance 
director, said yesterday that 


Unigate expected to realise rob- 
rfunHnUy more than the xxum 
of net assets in the companies. 
It bad received rerent un- 
solicited approa c he s about the 
co mpanies. 

Uni gate bag broadly diversi- 
fied over the years away from 
its traditional business of pro- 
cessing and selling milk. The 
strategy has paid off in rapid 
earning * ? growth, with profits 
up by 37 per cent to £47. lm 
in tiie six months to last Sep- 
tember. Mr Hodson, however, 
said ♦hat Unigate bad reached 
a f undamen tal decision to “ con- 
centrate on key markets that 
we know.” 

The companies to be sold are: 
Giltspur Engineering Design; 
Giltspur Precision Industries; 
Giltspur Technologies; Winnn- 
ton Electrical Services, and 
Wincanton Engineering. 


BOARD MEETINGS 


TODAY 

Fulcrum imMbBNt Trust. 

Hum tot Holdings. Kslaay Industries, 
Northern Industrial Inpimnwit 
Trust, Ssdgwick. 

Ranh: Chonnol Tunnel Investments, 
Culiea’s. A. Goldberg. London 
Associated Investment Trust, Value 
and Income Truat, Whittington 
Engineering. 

FUTURE DATES 

I nterim: 

AGA AS Mny 28 

Anglia Secured Hemes June 4 


Bodyshop 

Carlton Communications 

French (Tfaomaa) — 

Fhata: 

Allied Colloids 

Chapman Industries .... 
Chesterfield Properties . 

Edbro 

FKI Eleetricals — - 

Lap Group 

PCT 

Reno Id _ 

Sahresen (Christian) .... 


, June 3 
, June 1 
, June 16 

, June lO 
, June 2 
. May 27 
. May 28 
, Mav 27 
. May 28 
. May 78 
, June IB 
June 17 


Hill Samuel, the merchant 
hank sponsoring the flotation 
of Computer People, the com- 
puter staff agency, yesterday 
confirmed that the company's 
offer for sale had been sub- 
scribed 21 times. 

More than 25,000 applications 
were received for a total of 35m 
shares, compared with the L7m 
on offer. It has, therefore, been 
necessary to ration the shares 
among the applicants. 

Some 219 of Computer 
People’s consultants and staff 
made preferential applications 
on pink forms for 511,500 
shares, compared with the 
339.200 which had been set 
aside for them. 

Those seeking 1083,000 will 
receive a full allocation; those 


35,000 shares and above will 
receive 1,000 shares. 

Letters of allotment will be 
posted next Wednesday and 
dealings trill begin on Thursday. 
A strong premium is expected 
in the wake of the Rolls-Royce 
and Sock Shop flotations earlier 
fhig month. 


Deritend lifts to 
£2.21m after 
all-round rise 


Deritend Stamping, the Wor- 
cestershire-based forgings, 
castings, electrical installations 
and repair group produced pre- 
tax profits up by 4 per cent at 
£2J21m for the year to Feb- 
seeking 3^00-7,000 will receive ruary 28 after growth in its 
3,000, and those seeking 8,000 casting and electrical divisions. 


or over will receive 40 per cent 
Public applicants will be 
more heavily rationed. _ A 
weighted ballot will be field 
which win probably result in 
an average of four out of five 
applicants being rejected. 

Successful applicants for 100- 
400 shares will receive 100; for 
500-000, 500; and for 1,000- 
30,000, 1,000. All applicants for 



6REENWELL MONTAGU GILT-EDGED 
IS ON THE MOVE. 

From 26th May 1987 our new address will be 
10 Lower Thames Street, London EC3R 6AE. 

Telephone 01-260 9900. Telex 27783. Facsimile 01-220 7113 

Green we 11 Montagu Gilt-Edged 

A pan of Midland Montagu, the investment banking and securities arm of Midland Bank Group 



Mr David Mead, chairman, 
said the group had achieved an- 
other record year with trading 
profit exceeding £3m for the 
first time. The directors 
viewed the current year with 
confidence. 

Total turnover was £3&ftn, 
compared with f 42.37m last 
time. After Adjusting for the 
effect of -the -disposal- of South 
Wales Forgemasters and Hayes 
Shell -Cast, sales of continuing 
group operations increased by 
6 per cent to £85-9m and trad- 
ing profit by 15 per cent to 
£3 .2 m. 

Net earnings rose from 27.4p 
to 28p. A recommended final 
dividend of 6-3p (8.6p) per 
share makes. 9p for the year, 
compared with 8p in 1986. 

Losses caused by a discon- 
tinued product range resulted 
in an exceptional item of 
£350,000 (nil). Net interest pay- 
ments fell from £649,000 to 
£536.000. 

After tax of £734,000 
(£678,000). the profit figure 
stood at £1.47m (£L44m). This 
was almost wiped out by the 
extraordinary loss of £1.46m 
(£96,000 credit) on the sale of 
the subsidiary companies. After 
the dividend charge of £475,000 
(£422,000), the retained deflicit 
for the year was £459,000 (pn* 
fit £L12m). 

HIGH GOSFORTH PARK (race- 
course proprietor and estate 
owner): Dividend for 1986. 
15p, plus special bonus of 5p 
(same). Turnover £6624*58 
(£636,906) and pre-tax profit 
£84,022 (£82,449), which in- 
cluded profit on sale of fixed 
assets of £41,382. Tax took 
£12,930 (£16,569). Stated earn- 
ings per share up from 72p to 
78p. 


US $ 100,000,000.- 

Credit Suisse Finance (Panama) S.A. 

11%% Guaranteed Notes, Series A, due 1992 

and 

100,000 Warrants to subscribe 

US $ 100,000,000.- 11%% Guaranteed Notes, 

Series B, due 1992 

NOTICE IS HEREBY GIVEN, pursuant to the Terms and Conditions oCthe captioned issues, 
that US S 1,000,000 principal amount of Series A Notes have been drawn for redemption at 
101% of their principal amount. 

The serial numbers of the 1,000 Series A Notes of US $ 1,000 each, drawn for redemption and 
representing US $ 1,000,000 principal amount, are as follows: 

259 MIS 1M13 1HH (1891 ilHI 44313 HIM MIM M>» HIM IM1I MIM 4BSS7 4*13* 721(3 7713* 8342* 1U» *4388 
371 Mil 1I4BI 20147 410*4 *3371 *4319 4S19* 6(107 (MU (7041 (741* (Mfl 40140 *«U7 71*40 77*17 02**1 8841* *410* 
277 S4«7 11402 2014* *311* *3*74 *4334 491*0 4*110 **(13 *70(4 *7422 *00*2 (0942 **I3» 72490 77190 B2717 00471 44740 
3*5 9730 11403 20190 13391 *9*75 Mill 491*2 Mill *M9* *70*9 * 7421 400*1 40941 **140 72020 77**1 030** 014** *4797 
*0* 9010 114*0 20191 *1174 *1*74 I4M1 *91*9 Mill 4M*0 47009 *7424 *00*4 MM( *9192 72095 77000 01227 095*4 0401* 

MB 9071 1 1 492 30112 *117* *1*77 *4140 49175 4*114 MMI *700* *7419 «B0»7 (0949 *9194 73011 77020 01211 0*712 *900* 
40* 9*01 11114 20194 *1100 44071 4414* *917* MZIB *4**2 *70*0 *7491 *0102 *094* 4*277 71471 770»* OHIO 04711 *9202 

1077 4013 11917 20(7* 411*2 44001 *4970 *9212 *431* 4MIC 470*4 47452 *0101 10947 6*27# 72919 77710 09*13 0*029 *9244 
10BI 49*1 11974 20130 *19** 440*1 44172 *9214 44321 4M07 *70*9 47477 *0104 *050* *9202 71114 77**1 41419 04011 15411 
1107 IS* 5 12022 20141 *2400 *«4fJ *4174 *5314 4(222 Miff 170*7 * 7*7* 40107 40947 4*209 71*17 70014 01744 0*114 9941Z 

1111 *5*4 12035 202*4 *9401 *40*7 (4*09 *5210 4*224 *M*9 *7124 *7*37 *9100 *0900 «*>0* 71510 70117 010*4 0*990 *55(1 

1112 9570 12114 5*712 *1402 *4104 *440* 45241 41310 4449S 47113 47*00 *010* IOI91 0*307 7311* 70172 03*01 01*31 *9**4 

32*2 *571 12190 57734 43417 *4109 *4407 *5250 4*2*1 ***** *71*1 *7*0* *020* 405*2 (VMS 717X1 70174 04107 0*014 *5M* 
1244 4572 121*4 5*719 (Ml* 4410* *44B* *9251 M274 **722 *71*1 *7**1 HIM *89** **114 7I74T 7*242 84414 8**01 *972* 
1110 0404 12906- 9*7*2-43420 -44107 *4449 I3Z5S MZ7S. *1 7*1.. 471*4. *74* 5 *02*1 *0*02 l*M3 74SS2 782** 0**31 *0071 19727 
13*1 *701 12170 9*7*8 *1*23 *4100 *4527 *5299 84277 4*724 (7X49 *7701 IBlM '40401 MM 74011' 701*0 OMSS *0104 *57*0 
14*4 4*12 135*7 5*793 (MU 4410* 44514 *9294 4*278 8*724 4714* *7704 40J1I *8*04 HI!) Mil 781*5 04912 *0170 *9**3 
1*2 4 7129 13ns 5*737 *1*2* 0*112 MI33 *5207 4*27* 4*72* 47247 *7704 40117 40*04 4*410 7*140 70*0* 047*1 *0*27 **»» 
1*20 7150 12711 9*790 83411 44111 *4139 *929* 4*201 4*7 11 471*0 *7707 *031* *0*07 *«|31 74211 74741 0471 9 *0*20 *459* 
1752 71** 12001 9*75* *1*12 *4114 *4517 *92*7 **182 M71Z *71** *7788 88145 *8771 4T43Z 7*212 787*2 09084 *8(44 M3SI 
100* 7477 12*11 9*7*0 81415 Mil 9 *4910 40373 4*900 4*714 *7170 *774* *0344 *8774 ***50 74219 7*034 8BM3 *0*48 «*04H 
1**8 7411 130*1 9*7*2 *1457 Mll( *4941 89271 81120 *4719 *7171 *7712 *0940 *5775 **072 74215 7*112 O510J *0715 *6*41 
1**1 7*4* 11100 5*7*1 *1*30 *4111 *4949 45*90 *412* 4*736 *7172 *7717 *01** *877* ***** 743*4 »!•• 0*087 *0094 9(042 

2532 7812 131(9 9*7*4 *9499 *4122 *4944 49*41 M910 M717 471 79 *7718 *810* *0777 4*764 74940 7*205 8*000 *00*5 *404* 
2901 9*29 114*9 9*75* *94*5 *4725 *4949 *9*43 **332 *47*4 87101 *7737 ««1*0 *07*1 7001] 74*30 000*2 8(010 *00*0 94147 

3574 1108 114** 407(1 *1482 *422* *4*25 *5**5 M351 1*010 *7102 *7740 *0191 *07*2 70042 74*3* 80189 0*019 *090* ***46 

3575 8105 11*41 *07*8 *1401 4*227 *4*28 *588* 881*3 (Ml* *7101 *7741 401*1 *87*1 70180 74*02 80101 0*022 *1007 *7001 

2501 OIOC 11704 *22*2 *1419 *4230 *9101 *5*71 8*9*1 Mill *7104 *7749 401*4 *07*4 701*1 75242 00102 0*024 *1214 *71*2 

2742 0100 13**0 *3270 *3M0 *4211 *9004 45*73 Ml*7 **423 *7109 87000 4019* *87*9 70101 7524* *0194 0(1*0 *1*47 *7104 

2741 0672 11*»* 12271 81M3 44213 49009 (9755 8*1*0 M028 *7209 *700* «*}•* *07*7 704*0 75291 00109 lliill *20** *7*45 

31*9 -4171 14001 *2107 *1**4 *4211 *500* *37*1 4*400 *4814 *7203 *7009 *0400 407*9 707*4 7547* MID* 0*2*0 *20*1 *7337 

111* 1112 1400* *2118 *1*80 *4240 *50*0 *57*0 0*401 «*8*3 *727* 17012 *0407 *0410 70024 79(47 00112 0M4D *24*0 *77*4 

35*2 8723 14044 *2115 *1*74 *424* *5079 ( 9090 (C401 M*2( (72H (70X3 (0400 *0001 71151 75*09 00137 0**49 *2*»* *7015 

3*2* 0071 141X7 *391* (3770 *4151 (9071 «M1! M42* M*10 *7207 *7057 *0*11 *0004 7113* 759M 00**0 0*771 *2*04 *7*04 

1**3 *150 14*77 *2X17 *177* *42*7 *5077 «M1> 4*827 ««9«1 *7172 8705* 00419 8M09 7115* 7*141 0057* 0*002 *2*71 MMI 

9*50 *171 14*83 *2320 *1780 *42*8 *5078 *9814 M4Z8 **«»B (7171 (7840 11MI *8810 71H0 7(!!( 02177 84031 *3040 *0104 

9*51 *830 14*00 02123 *1701 (42(9 (3001 *9035 (Mil ***** *7174 *7*23 *0410 *0814 712*1 7*270 82179 07039 93312 *04*5 

4001 *494 14**1 *1700 *1702 *4271 *9804 85040 4*449 87011 *7178 87*13 *14*9 *0819 711*1 7*545 02180 870*1 *1111 10(40 

4005 *4(0 141*9 *370* *1701 *4203 *9005 *98*1 *4*44 *7011 *197* *7*3* *849* 488(7 71427 74944 82383 87190 *14(4 *04*7 

4041 99** 14**C *27*0 *179* MI** *508* *5843 4(445 87019 *7105 (7911 484*0 *0829 71*44 7*947 82M4 874*3 *1(17 *8711 

*101 *717 19253 (27*1 *17*1 (*2*0 (590* *5044 ((*** *781* *734* *7*14 (84*9 *882* 7172* 7**12 821*7 67**4 HIM ,0 B <M 

*10* *7*1 15111 *27*4 *17*2 4*2*9 *94*9 49890 4**90 *7017 47307 *7*42 Hill *8827 72028 78*38 82*01 87782 *19(4 *8003 

8*91 *8*6 18825 07*5 *17*1 MSOO *9119 *5851 8*911 *7010 *7 188 * 71*3 <8*(B *8820 7302* 77130 82*05 871*8 *30«( 18820 

8*92 *672 19990 83801 *97*7 MIDI 85130 *3803 4*512 *701* *714* *7««* *847! *082* 72*10 77112 02*08 07**7 *3*11 *<010 

**51 *V»S 15*12 63*29 *17*8 **103 *513* 438*8 4*513 87020 *7J*5 *7*8* *8*72 *813* 72171 771*0 8240* *81*5 *3*19 **D54 

9011 10J18 15**8 42*37 138*4 *4>o« 89140 888*1 *1518 87021 871f* 88092 ««58( *8*78 72172 7714* 82411 8814* *4010 **J2S 

5019 10140 18417 42*11 43*M 44107 49144 498*4 44S3X *7023 473*7 *0044 44301 40*00 72173 7717* 02414 001*1 *40(1 *««25 

SI7S 10333 10470 *104* 41*17 44200 491*7 *54*9 44922 47010 4741* 40047 48919 *0*81 7216* 771*0 02*17 8810* *«2Z( 1**24 

5247 10945 18*81 410*8 41*16 4410* 45194 4408* *(511 *7031 41*15 *407* *4917 *4*42 723*7 772*2 82416 881*1 »*3«J **779 

S2SS IMIS 18484 41090 41*48 M312 491S7 *48*3 44934 *7033 47414 IM9Z *8533 *9139 72434 77285 82*1* 88*31 *4411 1***1 

The Notes drawn for redemption will become due and payable on June 22, 1987 together with 
accrued interest for the period from February 13, 1987 to June 22, 3987. On and after June 22, 
1987 the Series A Notes so redeemed shall cease to bear interest. 

As of this date, the outstanding principal amounts are: 

Series A Notes: US $ 4,000,000.- 
Se ries B Notes: US $ 96,000,000.- 

Zuricfa, May 14, 1987 CREDIT SUISSE 

as Fiscal and Principal 
Paying Agent 


SvenskaCefkdosa 

AkbebofagetSCA 


lllfea 

r V 

+*i * t* \ 

-•'Xd** V*- 

V<v 

; 

M A-.- 11 ': - t Y 

-I*-.'--.' 



t-ii i Jl 



1 Jf. ip ;t 

- ' ' *• 







fratatin: 

MAUUftLCWDO 


FFV 


nfiKTi 


SCA Group is one of the largest wood and fibre processing 
enterprises in Sweden and throughout Western Europe. In 1986 
its net sales rose by 21 per cent to SEK 15,217 (12,611) million 
The Group’s consolidated earnings before extraordinary items, 
appropriations and taxes increased by 6 per cent to SEK 1,399 
(1,323) million. 

The increase in earnings is primarily the result of sharp 
improvements at the subsidiaries Mdlnlycke (hygiene products) 
and SCA Packaging (packaging materials) . A dividend of SEK 5 
is proposed, representing an increase of SEK 0.60 or 14 per cent 
For 1987 an improvement of some significance is expected in the 
Group’s consolidated earnings before extraordinary items. 


&. INDUSTRIES 
STOMP ntOCQfiBM SCA 
SMOVK SfUWSM 
EDSSHHXrCS SAS 


S-10DSS : 


i On 10620, 


i print. 


CRy + Arace*. 


&a 


Tltia offer* 


‘Oct 31 , 19*7 














/ 





Financial Times Friday May 22 1987 


39 


u Us 


UK COMPANY NEWS 


Her 




• rj X, 

’ . • 




• . ..-v 

tr- > 







■■ . 


-i-i* 


■V? 


BAD DEBTS AND LITIGATION PROVISIONS 


C E Heath’s profits tumble by £20m 


C. E. Heath, international In* 
rarance broker, saw pre-tax pro- 
fits fall back from a restated 
figure of .£34. 67m to £14.47m in 
the year to March 31 1987. Turn- 
over moved up from £6 9.98m to 
£88.4Im. 

Profits were struck after ex- 
ceptional items of £11.24m 
(ffr,2Tm) which comprised pro- 
visions for bad debts and liti- 
gation. 

However, the board proposes 
an increased final dividend of 
17.885p (17.395p). making a 
total of 2498Sp <24.395p) for 
the year. 

Mr Richard Fielding,' chair- 
man, said that the year was one 
of the most difficult in the his- 
tory of the group and the re- 
sults were extremely disappoint- 
ing. However,- he believed that 
tiie results were the bottom and 
that the company could expect 
a steady, albeit not Immediate, 
return to the levels of profit- 
ability seen in the recent past. 

He said that he firmly be- 
lieved that there was an Im- 
portant role for the indepen- 
dent London-based broker, and' 
that Heath would be well posi- 


tioned to fulfil this role in the 
years ahead. • 

The performance of the group 
was Impaired by the loss of its 
Workers’ Compensation busi- 
ness in Australia and by contin- 
uing problems with bad debts 
and litigation provisions, parti- 
cularly within the UK broking 
operations. A US lawsuit against 
Heath’s Bermudian reinsurance 
company, Pinnacle, started to 
receive considerable publicity. 

The departure last autumn 
of -several senior executives 
from the Heath USX and North 
American broking companies — 
had two important effects: a 
substantial loss of brokerage, 
particularly from North Amer- 
ica; and on the morale of man- 
agement and staff, particularly 
in foe UK. 

Analysis of profits and turn- 
over on ordinary activities be- 
fore tax and exceptional items 
shows: insurance broking; 

£12-7m (£19.01m) on £4&80m 
(£45-24t); underwriting, 

£11. 69m (£15.66m) on £28.73m 
(£20. 46m); and computer ser- 
vices, £L67m (£228,000) on 
£1 5.82m (£4J£8m). Other income 



Richard Fielding; 

chairman of C. E. Heath 

amounted to £980,000 (£2. 63m) 
and interest paid amounted to 
£L33m (£655,000). 

- Mr Fielding said that operat- 
ing profits were adversely affec- 
ted by £3.1 m as a result of the 


strengthening of sterling. In- 
cluded within this year’s 
figures was a contribution from 
fielding insurance Holdings 
for the 15 months ended March 
31 of £7.2 8m. 

Group operations experienced 
a £4m shortfall in brokerage 
income against that forecast at 
foe time of merger between 
but Heath was starting to obtain 
Heath and Fielding Insurance 
Holdings in October last year. 
About half of this shortfall was' 
renewal business lost that had 
been expected to be retained, 
and the remainder was a failure 
to achieve new business 
targets. 

Mr Fielding said that Heath's 
priority was to stem foe loss of 
personnel and, therefore, 
brokerage income. There were 
signs that this has been 
achieved. One or two major 
accounts had moved elsewhere 
significant new accounts and the 
signs were that this would con- 
tinue through the year. 

The process of merging Heath 
and Fielding was well advanced. 
Underwriting activities would 
receive useful profit contribu- 


tions in the coining year from 
Heath's acquisitions in 
Australia. 

Pinnacle had shown another 
sig n ifican t Increase but its per- 
formance for the current year 
would remain difficult to predict 
with any confidence because the 
existence of foe current litiga- 
tion had inhibited new business 
growth. 

Mr Fielding said that based 
on current facts and the views 
of its lawyers, foe exceptional 
item represented a realistic 
appraisal of the ultimate cost 
of foe group’s complex and 
lengthy litigation matters. 

Tax charges accounted for 
£5 .31m (£12 -31m) and minority 
interests for £271,000 
(£181,000). Extraordinary items 
of £4.15m (£419,000) consisted 
of non-recurring costs asso- 
ciated with the merger with 
yielding Insurance Holdings 
and the defenc e ag ainst the 
takeover bid by PWS Holdings 
last October. Earnings per 
share worked through down 
from 50-5p to 20p. 

See' Lex 


A FINANCIAL TIMES SURVEY 

NORTH KENT 

MONDAY JUNE 29 1987 

Topics proposed for discussion include: 

ENTERPRISE ZONE 
INDUSTRIAL DEVELOPMENTS 
RETAIL 

THE CHANNEL TUNNEL 
CHATHAM DOCKYARD 
LEISURE + TOURISM 
HOUSING 

THE ECONOMIC BASE 

For a full editorial synopsis and details of 
otxrildbZe advertisement positions, please contact: 
ANDREW WOOD 
on 01-248 8000 Ext 4120 
or write to him at 
Bracken House, 10 Cannon Street 
London EC4P 4BY 

FINANCIAL 

'EUROPES 

The sin, content and publication dates of Financial Times 
. Surveys- sro subject to change at the discretion of the Editor 


Bromsgrove 

Industries 

Bromsgrove Industries, which 
manufactures' and machines 
metal raiding s for a variety of 
industries, has produced pre- 
tax profits on ongoing activities 
of £720,000 for foe year ended 
March 31 1987. This compares 
with £502,000 for the preceding 
year and the forecast of 
£700,000 made in March when 
foe acquisition of BJanson Pre- 
cision Catting Tools was an- 
nounced. 

Coupled with the results, the 
company announced foe acquisi- 
tion of Ml Brs (Birmingham) 
for £730,000, which will be satis- 
fied by the issue of 548,873 new 
Bromsgrove ordinary. 

Hill , which specialises in the 
manufacture and processing of 
components and metal trim for 
the. domestic appliance market, 
is supplied with some of its 
raw materials by Vetchberry, 
which Bromsgrove acquired in 
October 1986. 

Turnover last year rose 32 
per cent from £9.28m to 
£l&25m, and trading profits 
from £502,000 to £720,000. 

The dividend is raised from 
1.3p to 1.65p with a proposed 
final of lJ.5p (0.9p) from earn- 
ings of 6J>5p (5.86p) on on- 
going activities, or 5.39p (6J57P) 
on net profits after, tax. _ 


HATT to gain SE listing 
in June valued at £32m 


BY CHARLES BATCHELOR 

Hambros Advanced Tech- 
nology Trust will join the grow- 
ing number of venture capital 
funds to opt for investment 
trust status when it comes to 
the stock market early next 
month by way of a share 
plating. 

HATT, in which the Hambros 
banking group has a large 
minority stake, had net assets 
of £3 8. 59m at March 31 and is 
expected to be valued at about 
£31m to £33m by the placing. 

Like a number of other 
privately owned UK investment 
trusts HATT faces a sizeable 

pnnital eratnc tar hill rf ft dis- 
poses of any of its investments 
at a profit. By becoming a 
publicly - quoted investment 
trust it will reduce its tax bill. 

HATT is currently invested 
in 26 high technology conn 
parties in fields such as tele- 
communications, computers and 
electronics, but its portfolio is 
dominated by three large hold- 
ings. They are a 3-6 per cent 
stake in Racal Electronics 
bought for £709,000 and cur- 
rently worth £2L26m; a 7J2 
per cent stake In Telematics 
International, a US computer 
Systems group, bought for 
£362.000 and now worth 


£10^6m and a 12.5 per cent 
stake in Alphameric, a maker 
of computer terminals, bought 
for £76,000 and now worth 
£5. 62m. 

HATT was managed directly 
by Hambros until April 1986 
tart was then transferred to 
Top Technology, a company 75 
per cent owned by Hambros 
with the remaining shares 
owned by a company owned by 
Mr Harry Fitzgibbona, Top 
Technology's managing director. 

HATT usually limits its 
initial investment in companies 
to £500,000 though the first 
tranche of investment may be 
for less than this amount. 

Net assets have risen from 
£3.43m at March 31 1983 to 
£38.59m at March 31, 1987. It 
disposed of shares in its invest- 
ments worth £3 .3ixi in the four 
years to March 1987 and made 
a profit of £2 2m before tax. 
Total realised losses and write- 
off! Since August 1982 
amounted to £1.28*1 on eight 
investments. 


MMMMMMMMUMUNIHUtUNtHIMW 


New Issue 
Muy 20, T9B7 


All of these bonds having been placed, this an- 
nouncement appears for purposes of recanJ only. 


1 INTER-AMERICAN DEVELOPMENT BANK 

j Washington, D.C. 


} DM200,000,000 

f 6% Bonds of 1987, due 1997 



Offering Price: 
Interest: 
Repayment: 
Listing: 


100 * 

8% p. fc, payable annually on May 20 

May 20. 1997 at per ,, . 

Frankfurt am Main, Beifin, DQsseMorf, Hamburg and MQnchen 


Deutsche Bank 

AJdieflgMeUsoheft 


Bayerische Vereinsbank 

AHmseMOKhaft 


■:S 

I 

1 

i 

3 

3- 

■t 

m 

■+ 

t- 

■m 

t 

. ■* 

* 

* 

I 

s 


Commerzbank 

Akttaemllwhdt 


BMddtaus H. AufMuMT 


Bsyerfsch* Lendoebanlc 
Gtroz«ntra(« 

Berliner Hand®**- 
urtd Frankfurter Bust 

Citibank. __ 

Osutsdn Gkanmtyale . 
-Deutsche Kommunslbsiik- 

p^^^Ts^luixa-xa^LKPdetrwTtenhaok 

l^nd*«b*nkR h elnlsnd-Pfafc: 
^GJraeentrsIe- . 

The NBdco SecurWiiCar 
(DeutBchtand) GmbH 

Salomon Brothers AG 
n^nkeueABtiridiardt KGaA 


DresdnerBank 

AWiengarttachaft 


Westdeutsche Landesbank 
GSrozantrale 


BankfCr Gemelnwirtschaft 
AktiengMeUacftoft 

Joh. Berenberg, Goesler&Co. 

Bankhaus GobrOdor Bethmann 

CSFB-Effectsnbank 

Dautsch-SOdamot&aniacfia Bank 

AktiangMaQacfteft 

Geotg HauckASohn Bankfore 

Komroanefitg — I H chU aut AkBen 

Merck, Ffnck&Co. 

Norddeutsche Landesbank 
Gfrozentnde 

S oh we fa e rfarh e Benka e sslle c hsft 
(Deutschland) AG 

Verebm-und Weston* 

AktiTfl»— lltrtiBft 

Wastfalenbsnk 

AMkngwsBsBheft 




Bayerische Hypotfiekan- und 
Wochsal-Bank 

AkfiengesaBschaft 

Berliner Bank 

AkttengoeaHschafC 

Bank of Tokyo (Deuttchland) 

Aktiangawflachaft 

DeibrQck&Co. 

DGBank 

Deutsche GsnotMRSchofttbmk 

Hsssfeche Lendeebank 
—Gbozentrala- 

B. Metder seal Sohn & Co. 

KommendHgeeeltechMft ayf AJctieo 

SaLOppenhetmjr.&Cle. 

SchwetaerfscherBankvereUv 

(Deutschland) AG 

MLM. WeAurg-Brinckmamv 
Wirtz&Co. 




MICROGEN HOLDINGS: One 
of company's Scandinavian sub- 
sidlares has agreed to purchase 
the laser minting assets and 
goodwill of Data Sats Informa- 
tion A/S, based In Copenhagen, 
for approximately £135,000. . 


Bass pays 
£55 m for 
four Holiday 
Inn hotels 

Bass, the UK’s largest beer 
brewer, has bought four Holi- 
day Inn hotels In England 
from the Holiday Corporation 
of Memphis, foe US com- 
pany which manages the 
chain, for a cash equivalent 
of £55 m. The move is pert 
of Bass’ continued expansion 
info the hotel industry. 

Negotiations are under- 
way for foe purchase of four 
additional hotels in Belgium, 
France, and the Netherlands 
for an expected price of about 
£33m cash. 

The hotels are to be 
operated by Crest Hotels, the 
Bus subsidiary, as Holiday 
Inn hotels under franchise 
agreements. Crest Hotels, 
which operates hotels through- 
out Europe, may convert addi- 
tional hotels to become part 
of foe Holiday Inn chain. 

Although the leisure activi- 
ties of Bass are minor com- 
pared to its brewing, drinks 
and pub retailing business, 
they have contributed sub- 
stantially to Bass’s growth in 
profits. In foe half-year end- 
ing on April 11, 1987, profits 
grew by 13 per cent to 
£133. 7m. The contribution 
from leisure increased from 
£6 Am to £15.4m, with Crest 
Hotels putting in a strong 
performance. 

The hotels in Britain are at 
London Airport, Mayfair, 
Birmingham and Leicester. 
The hotels under negotiations 
in Europe are in Paris. Ghent 
and Brussels Airport and 
Eindhoven in foe Nether* 
lands. 


Ward White 
pays chairman 
£317,000 

MR PHILIP BIRCH, chair- 
man and chief executive of 
Ward White, foe acquisitive 
retail group, saw his remun- 
eration increase from £225,000 
to £317,000 in 1986/87, 
according to foe company’s 
annnal report- The majority 
of foe remuneration was 
linked to group performance. 

The report also reveals that 
foe company wrote off 
£1 88.7m of goodwill last year 
— £78.4m in respect of Pay- 
less, the DIY group bought 
from Marley in Much 1986 
for £94m, and £110Jm for 
ZjCP, which it won after a 
contested bid battle for 
£173 m in December. 


Barry Wehmiller to join 
SE valued at £30.6m 


BY RICHARD TOMKINS 

Barry Wehmiller Inter- 
national, a Cheshire-based pack- 
aging equipment group which 
has outgrown its USparent, is 
seeking independence through 
a stock market flotation which 
will value the company at 
£S0.6m. 

It is ooming to the market 
through an offer for sale 
sponsored by Hill Samuel, the 
merchant bank, with Wood 
Mackenzie as stockbroker. The 
prospectus will be published on 
Tuesday. 

Nearly 15.87m shares in BWI 
— some 70 per cent of its equity 
—are being offered at 135p a 
share. Some 2.44m shares are 
being sold by BWI and bte 
balance are being sold by 
Bany-Wehmiller Company, the 
Missouri-based parent. 

BWI has three divisions. One 
supplies vision systems — elec- 
tronic devices which check for 
contaminants in food and drink. 
Another supplies machines that 
put tops on bottles and con- 
tainers. The third supplies 
bottling machinery. 

The company was set up in 
1951 as a European subsidiary 
of its US parent It was 55 per 
cent owned by Stone Platt 
Industries until 1981, when 
Stone Platt sold its stake to 
the US parent as part of its 
rationalisation programme. 

Originally a specialist in 
bottle washing equipment BWI 
has diversified into other mar- 
kets since 1981 — partly through 
a series of acquisitions. Today 


its fastest growing division is 
vision systems, and it is also 
benefiting from the demand for 
sealing machinery for n im- 
permeable plastic containers 
such as foe new Heinz squeezy 
ketchup bottle. 

The prospectus will show pre- 
tax profits of £1.7m for the 
year to last July on turnover 
of £21 An, and for the current 
year BWI is forecasting profits 
of £3 .5m on turnover of £25m. 
Its shares will therefore be 
offered on a prospective price/ 
earnings ratio of 93 on ao 
actual tax charge and 12.7 on 
a notional 35 per cent 

An offer for sale has been 
chosen because foe amount of 
money being raised, £21.4xn, is 
above foe £L5m limit on 
pla cing ;. 


British Borneo 
to over £2.3m 

British-Borneo Petroleum 
Syndicate, an investment hold- 
ing and dealing company, in- 
creased its pre-tax profits from 
£191m to £2 .31m in the year 
to March 31 1987. The total divi- 
dend is raised from 20p to 22.5p 
net with a final up from 14p 
to 15.5p. Stated earnings per 
lOp share improved from 27.5p 
to 34.4p. 

The directors said they had 
taken the opportunity of high 
stock market values to realise 
a higher than normal dealing 
profit. 


Castings rise 21% to £1.9m 


Castings, West Midland-based 
malleable ironfoonder, reported 
a 21 per cent increase in tax- 
able profits for foe year to the 
end of March 1987. And with 
aQ foundries working to 
capacity the board said it was 
looking forward to a period of 
stability with low inflation. 

On turnover up from £13J22m 


to £14.5910, a rise of 10 pci 
cent, pre-tax profits were £L87m 
(£1.5 5m). After tax of £571,000 
(£452,000) earnings per lOp 
share came out at 12.67p 
(10.69p). 

An increased final payment of 
2.75p (2-lp) is being proposed 
malting the total for the year 
3.75p (3p). 


DIVIDENDS ANNOUNCED 

Current 
payment 

British Borneo ......... 15.5 

Bromsgrove 2nd. ...... 1.15 

Castings ■- 2.75 

Deritsd Stamping ... 6-3 

Hambros Inv. 3J3 

C. E. Heath 17A9t 

High Gosforth He ...... 201 

No-Swift Lad 5.25 

Priest Manors 1*5 

Shires Investment ...... 5 

Txiefos ... 1 

Underwoods 3-5 

Wordplex - nil _ ^ 

Dividends shown pence per share net except where otherwise 
stated. * Equivalent after allowing for scrip issue, t On capital 
increased by rights and/or acquisition issues. tUSM stock. 
S Includes 5p bonus. 


Date Corres- 

Total 

Total 

of ponding 

for 

last 

payment 

div 

year 

year 

July 17 

14 

22.5 

20 

July 23 

0.9 

1.65 

3-3 


2.2 

3.75 

3 

July 18 

5.8 

9 

8 



3.3 

5 

4 JS 

July 3 

17.4 

25 

24.5 



20f 

20 

20 

July 1 

2.25 

7 

3.5 



1.4 

1.5 

1.4 

July 30 

5.75 

14 

23.25 



0.05 

1 

0.05 

_ 

_ 

2J5 

— 

— 

nil 

nil 

0.5 


W. H. Smith pays 
£7m for control 
of troubled TSI 


BY ALICE RAWSTHORN 

W. H. Smith, retailing and 
leisure group, has agreed to 
acquire a controlling holding in 
Television Services Inter- 
national, the troubled film and 
video production group, for 
£7m cash. 

TSI also revealed a pre-tax 
loss of £3. 11m for 1986. Mr 
John Jackson, who took over as 
chairman with the introduction 
of a new management team in 
January, said that after an in- 
vestigation of the group’s 
accounts significant adjustments 
had been made to previous 
accounts. Reported pretax 
profits for 1985 were reduced 
by £2 .26m, producing a loss of 
£1.46m. 

When TSI went public on the 
U5M in 1983 it was welcomed 
as a potential successor to 
Carlton Communications, foe 
successful production group. 
The company expanded rapidly 
but its profits record was erra- 
tic. 

Earlier this year its problems 
came to a head when Mr 
Andrew Lee, foe chairman and 
chief, executive, resigned to- 
gether with two other directors. 

TSI has now concluded 
agreements with some former 
directors for the repayment of 
money owing to the company. 

The new management team, 
headed by Ur Jackson, con- 
ducted a review of the group’s 


activities and TSI has since 
decided to withdraw from en- 
tertainments. which made losses 
of £1.2m (£1.63m) on turnover 
of £2.5Sm (£2. 93m) last year. 

The group will concentrate on 
video post production. The 
continuing interests made losses 
of £1.9m (profits of £168,000) 
on turnover of £S.43m (£6 .32m) 
in 1986, but are now trading 
profitably. 

The cost of reorganisation 
and rationalisation of these in- 
terests, £600,000, was taken as 
an exceptional item. 

Overall TSI made a loss per 
share of 28.5p (18.8p). The 
share price fell by 8p to 68p 
yesterday. 

Arthur Young, TSI's auditors, 
qualified Its report by stating 
that the group’s ability to con- 
tinue trading may be dependent 
on foe conclusion of its re- 
financing arrangement Under 
the terms of this arrangement 
W. H. Smith will acquire a 
51 per cent holding. 

Mr Simon Hornby, Smith’s 
chairman, said that TSI would 
fit neatly within the group's 
television division by providing 
production facilities for its 
cable and satellite television 
channels. Mr Francis Baron, 
managing director of the tele- 
vision division, and Mr Brian 
Jamieson, group finance direc- 
tor, wil join foe TSI board. 


Rushlake cuts its holding 
in Mitchell Cotts to 12.5% 


BY CLAY HARRIS 

Rnaiifah* Holdings confirmed 
yesterday that it had sold more 
than a quarter of its stake in 
Mitchell Cotts, the engineer, 
contractor and international 
trader facing a hostile £74m 
takeover bid from S uter, the en- 
gineering and distribution 
group. 

Rushlake, a private company 
controlled by the Jivraj family, 
reduced its holding from 17.4 
per cent to 12.5 per cent with 
sales in the market on Wednes- 
day. It had rejected an offer 
from Suter, before the bid was 
launched, worth 70p a share. 

Mr David Abell, Suter chair- 
man and chief executive, told 
shareholders at yesterday's 
annual meeting that all operat- 
ing subsidiaries except the 
packaging activities in Francis 
Industries had performed very 
satisfactorily over the first four 
months of the current year. 

He said that the Mitchell 


Cotts offer bad been pitched at 
a realistic price consistent with 
Suter’s acquisition policy. 

“ We are not prepared to pur- 
sue such targets regardless of 
cost, particularly in a stock mar- 
ket climate which encourages 
inflated expectations. 1 * 

With Suter shareholders’ 
approval of a one-for-five scrip 
issue, the bid terms have been 
adjusted to three-for-l0. 


UNXTYCORP TRUST (formerly 
Wemyss Investment Tnist): Net 
asset value per £1 share 
improved from 109.8p at end- 
March 1986 to 124.6p a year 
later, and from lOS.Sp to 123 
after adjustment of rights 
attached to warrants. Stated 
earning*! per share In the six 
months to March 31 were lower 
at L06p compared with L86p. 
Pre-tax profits fell from 
£382,000 to £220,000. 


THOMAS MARSHALL 

(LOXLEY) P.L.C. 

(Manufacturers of Caibon, Free lay, and Heat Insulating 
Refractories} 

FURTHER ADVANCE IN PROFITS 


Results In brief 


Turnover 
Profit before tax 
Dividend 

Eami rigs per share 


1986 

£000 

22,286 

1,247 


16.1 


1985 

£000 

19.553 

1,118 

4.0p 

15.94p 


Extracts from the drcutaf«f smtemenl by tfw Chafonaa Me R O. Hart 

> lam pleased to report that the group made further 
progress In the year ended 31st December 1986, 
despite the lower level of demand experienced by 
some of oursubsldiary companies. Group profits' 
advanced to £1,247,376 before tax compared with 
£1,118,146 In 1985, an Increase of 11.5 percent. • 
Earnings per share at 16.12p reflect a tax charge of 
26.5 per cent compared with only 17.7 per cent 
in 1985. 

I We are pleased to recommend the payment of a final 
dividend of 2.6p per share making a totaj for the year 
of 4.6p, an increase of 15 percent The dividend is 
covered three and a half times by net earnings. 

The Directors propose that the authorised share 
capital be Increased from £2,200,000 to £2,500,000 
by the creation of a further 1,200,000 Ordinary shares 
of 25p each. The purpose of this increase Is to 
replace the shares allotted in making the acquisition 
of the Steettey holloware business and to give some 
small extra flexibility. The Group looks forward to 
further progress in 1987. 


ARSHALL REFRACTORIES 



CoiSes of the Report and Accounts are available from tin Secretary: 

STORRS BRIDGE WORKS, LOXLEY, SHEFFIELD, S6 6SX 



SPONSORED SECURITIES 

Gross Yiald 


Hlah Law 

Company 

Price Change div.(p) 

% 

P/e 

1B1 

133 

Ass. Brit. Ind. Ordinary «... 

159 

— 

7.3 

4.6 

9.7 

163 

145 

ASS. Brit. Ind. CULS — 

163 


10.0 

6.1 

— 

38 

34 

Armings and Rhodas - 

38 

+1 

4J2 

11.1 

5.3 

SO 

67 

BBB Dssign Group (USM) 

76 



1.4 

1.8 

18.1 

234 

216 

Bordon Hill Group — — 

234 

+2 

4.6 

2.0 

26 .8 

148 

95 

Bray Tsctmologlss . — 

146 


4.7 

3.2 

114 

148 

130 

CCL Group Ordinary 

146 

— 

2.9 

2.0 

10.4 

106 

99 

CCL Group 11 pc Conv. PI. - 

106 

— 

16 7 

14 8 


14? 

138 

Carborundum Ordinary ......... 

142xde 

— 

5.4 

3.8 

12.3 

94 

91 

Carborundum 7.5 pc Pf. ......... 

94 

— 

10.7 

11.4 


98 

87 

Gaorqs Blair - 

38 

+ 1 

3 7 

3.8 

24 

143 

119 

lals Group 

120 

— 

18.3 



1® 

118 

Jackson Group 

125 

— 

6.1 

4,9 

84 

376 

321 

James Burrough 

375 

— 

17.0 

4.9 

10.5 

84 

88 

Jamas Burrougii 9 pc Pf. . — 

94 

— 

12.9 

13.7 


7RO 

540 

MultiHauaa NV (AmatSE) 

S40xd -10 



21.4 

417 

351 

Record Ridgway Ordinary 

417 

_ 

1.4 

— 

8.4 

88 

83 

Record Ridgway IOpc Pf. 

88 

— 

14.1 

16.4 


01 

SI 

Robert Janklns 

81 

ate 

— 



34 

95 

42 

ScrutUng 

93 

— 

— 

— 


160 

141 

Torday and Carlisle 

160 

— 

5.7 

34 

97 

336 

321 

Troy is vi Holdings 

33S 

+6 

7.9 

2.4 

74 

102 

73 

Unilock Holdings (SE) 

102 

— 

2.8 

2.7 

18 6 

147 

115 

Walter Alexander 

147 

+1 

5.0 

3.4 

14.1 

ISO 

190 

W. G. Yen tea — 

192xd 

— 

17.4 

9.1 

19.2 

116 

ss 

West Yorks. Ind. Hasp. (USM) 

110 

— 

55 

sn 

11.7 


Granvdie & Company Limbed 
8 LovntLtae, London EC3RBBP 
Telephone 01-621 1212 
Member of FIMBRA 


0 


GranviDc Davies Coleman Limited 

27 LovttLmc, London EC3RSDT 
Telephone 01-621 1212 
Manber of the Stock Esehsoge 


l 



40 


Friday May 


\ .S- 




COMMODITIES AND AGRICULTURE 


Moving house 
broadens 
LCE’s options 

BY DAVID BLACKWELL 

THE LONDON Commodity Ex- well away from each other. The 
c h a n ge hopes that the move to coffee market has been 
its new building at Commodity operating at Plantation House, 
Quay, St Katharine Docks, this off Fenchurch Street, 
weekend, will herald a much- The international Petroleum 
needed upturn in its fortunes. Exchange, which has been 



The move will bring trading 
in soft commodities in London 
under one roof far the first 
time, ending the fragmented 
trading practices which have 
done nothing to help the LCE 
in its battle to retain business 
in the face of competition from 
the powerful US exchanges, and 
the hi ghly-su cc essful London 
Financial Futures Exchange. 
“We can now provide an 


trading at 21 Mark Lane, will 
be joining the LCE On the 
same trading floor in the £5 -5m 
development. 

The LCE had planned to move 
to Commodity Quay at Easter, 
but the fining out of the build- 
ing was delayed by the strike 
of British Telecom engineers. 
It has waited for a Bank 


Truvor NunipViu 

Commodity Quay — LCE trading comes under one roof 


retaining the ring system of options should prove attractive 

to “locals” — traders who earn 
their living by operating on 
their own account. 

The first 20 locals will be 
able to start trading on June 
10. The exchange is now taking 


trading, whereas the IPE will 
adopt a pit system for its con- 
tracts in gas oil, heavy fuel oil, 
gasoline and crude oil. 

Between the two trading 


areas a space has been reserved 

Holiday weekend to carry out f or traded options, which will applications for -the remaining 
. . the move in order to ensure be launched on July 20. Four 30 places. 

JfSSJS 1 “y last snags can contracts will be offered — on The increased volume that the 

don^Mid^dfsaronTSe 1 ^ chair-’ b r e J roned 0Ut cr l3 < S 0 ^pSS ng cocoa ' s 11 * 81 and c0ffee ** LCE believes will be generated 
a , saia Mr baxon Tate, cnair starts m earnest on Tuesday. lce and on gas oil futures by by locals and options whl “prove 


In addition to the con- 
venience factor, the LCE hopes 
that the move to one trading 
floor will help its members to 
cut the costs of administration 
and telecommunications. 

Although cocoa and sugar 
have both been trading at 52 
Mark Lane, the exchanges are 


starts in earnest on Tuesday. 

Mr Tate said the exchange 
was going for 100 per cent 
success with the move, planning 
to stop trading this evening at 
the normal time and restart on 
Tuesday as if nothing had 
happened. 

Sugar, coffee and cocoa are 


the IPE. to the world that the LCE 

The LCE sees the introduc- means business,” said Mr Tate, 
tion of options as a vital step More new products were 
in increasing the volume of planned, which would help the 
business at the exchange, which exchange to capitalise on “ the 
last year traded 3.5m lots worth much more positive attitude ” 
£40bn, compared with just over be had seen in the industry 
2m lots in 1985. In addition, over the past year. 


Oxfam calls on 
EC to reduce 
sugar surplus 

By David Blackwell 
OXFAM IS urging the Euro- 
pean Community to reduce its 
sugar beet surpluses, which it 
blames for depressing world 
sugar prices. This in turn 
increases the poverty of 12m 
Third World sugar cane 
workers. and their families. 

The use of sugar, substitutes 
and high fructose com syrup 
in the US is exacerbating the 
problem, according to a report 
published by the charity.* 

The report calls for major 
producers to agree market 
shares and draw up a new 
International Sugar Agreement 
to stabilise world prices. It 
wants cane producers to be 
given financial compensation 
for the loss of markets, and 
rich world governments to 
insert into trade agreements 
“ fair labour " clauses designed 
to ensure reasonable pay and 
working conditions on cane 
plantations. 

It also urges Third World 
governments to speed up land 
reform and help sugar workers 
diversify into alternative pro- 
duction- —• particularly of food 
crops. • 

Ms Belinda Goote, author of 
the report who looked at sugar 
growing areas in the Philip- 
pines, Jamaica and Brazil, 
admits that the causes of the 
world sugar crisis are complex 
— but “without urgent inter- 
national action the toll of 
human misery will continue to 
mount” she warns. 

• The Internationa] Sugar 
Organisation is forecasting a 
" statistically insignificant ” 
surplus of world production 
over consumption this year. 

It puts 1986/87 (October- 
September) production at 
102.3m tonnes and 1987 con- 
sumption at 101.9m tonnes. It 
says it is improbable that prices 
will rise above 10 cents a lb 
from the current seven cents 
* The Hunger Crop — Poverty 
and the Sugar Industry. Oxfam 
Publications, 274 Banbury 
Road, Oxford 0X2 7DZ. 


Japanese electricity concern 
wins Australian coal price cut 


FINANCIAL TIMES REPORTER 

AUSTRALIAN coal suppliers 
have conceded an 8 per cent 
price cut to Chugoku Electric 
Power, Japan's biggest steam 
coal importer, ending a two- 
month impasse. 

The reduction lowers to 
£29.40 a tonne from S3L98 the 
base price Shugoku will pay to 
four Australian suppliers in the 
contract year starting April 1. 

The contracts are subject to 
Australian Government appro- 
val. Australian coal industry 
officials were quoted as saying 
that in Australian dollar terms 


the new price was 22 per cent 
below last year’s price. 

The deal with Chugoku is 
expected to set the trend for 
contract renewals between 
Japanj other private utilities 
and Australian mines which 


round of negotiations with Pitt 
ston Coal Export Corporation 
of the US in an effort to renew 
the contract which expired at 
the end of March. 

Japan imported nearly 11m 
tonnes of US coal in 198&87, 


supply about 14m tonnes of of which Pittston supplied 3.5m 

power station coal a year to tonnes. The Japanese cl 3 ”" 

Japan. other suppliers have dropped 

Meanwhile, Japan’s contract- their prices by between S5 and 
ing steel industry is continuing $10 a tonne compared with last 
to exact equally painful price year and are seeking a cut of 
concessions from overseas sup- at least $5 from Pittston. But 
pliers of coking coaL Six major so far the two sides have failed 

Japanese steel mills have just to agree on either price or 

completed a second abortive tonnage. 


Price boost for Ghana cocoa 
to aid crop improvement 


that any benefits from a net 
rise in cocoa revenue, throu 


MR KWAME OWUSU, chief Mr Owusu said the bonus had 
executive of Ghana’s Cocoa been set to encourage fanners 

Board, has announced a sharp to improve efficiency following higher world prices or varta 
rise in the country’s cocoa pro- the channelling of a large tions in the value of Ghana's 
ducer price in an effort to amount of foreign exchange currency, would he passed on 
maintain the momentum of a into the West African nation’s to the fanner. He did not elab- 
successful rehabilitation pro- cocoa sector during the past few orate. 

ject for its main export, reports years. Under a weekly currency 

Reuter from Accra. Ghana, the world’s third auction system introduced last 

He said the new price payable largest cocoa producer, launched September, the cedi is now 

an ambitious World Bank- worth about 160 to the dollar 
backed rehabilitation project in compared with 90 when Ghana 

1983. set its cocoa producer price 

Successive producer price last year, 

rises, replanting of cocoa trees In other comments, Mr 
cedis paid during the past 12 burnt during 2983 bush fires Owusu said smuggling of cocoa 
months. and efforts to make available into neighbouring Ivory Coast 

Mid-crop purchases are due sprays and consumer goods to and Togo, once a serious drain 
to begin soon although the fanners have rekindled their in- on Ghana’s foreign exchange 
official opening of the season terest in cocoa and production reserves, had fallen to 3 per 
has not yet been announced. has risen. cent of total output because of 

He also said farmers would Ghana’s current total crop is frontier patrols and the 

be paid an additional bonus of expected to be around 230.000 increased earnings of farmers. 
10,000 cedis (£38) per tonne of tonnes and Mr Owusu said it About 13,000 Cocoa Board 

was on course to produce staff were laid off last month 
250,000 tonnes next season. as part of a major re stxu c m r- 
He said the Government had ing exercise to improve 
worked out a scheme to ensure efficiency, he added. 


at all buying centres from the 
forthcoming mid-crop season 
would be 4,200 cedis per 30-kilo 
headload (equivalent to £526 
a tonne), compared with 2,550 


cocoa if they attained a 24 per 
cent increase in yields over 
the previous year, the Ghana 
News Agency reported. 


Shadows over Mauritanian iron ore 


BY PETER BLACKBURN, RECENTLY IN NOUADHIBOU 

A NEW defensive wall built 
by Morocco to keep out the 
Algerian-backed PoUsario, who 
are fighting for the independ- 
ence of the Western Sahara, is 


Melamine, director of control, giant Carajas project in Brazil process was designed with 
pointed out The high quality Mauritanian nominal capacity of 6m tonnes 


a 

_ , , . . nominal capacity of 6m tonnes a 

The company has also stream- iron ore is seen by officials as year. Output last year totalled 

lined its activities to concen- “ complementary ” to the low only 1.5m tonnes, however, 

trate on iron ore production, silicate content Brazilian ore. Water is also a major prob- 

casting a shadow over Mauri- It has sold controlling interests Neither does it have any supply lem at Zouerate, where the 

tania s strenuous efforts to com- in a local steel rolling mill as problems, even though the four population bas risen to nearly 

pete in a depressed world well as hotel and catering existing mines in the Kedia 50,000. During the hot season 

market for iron ore. businesses. These and other D’idjil mountains near Zouerate extra supplies have to be 

The shale and sand wall runs measures to reduce operational will soon run out. brought in by train 

parallel to Mauritania's iron costs and improve management Reserves in the nearby Energy supply is another 

ore railway for about 220 kilo- helped it make a small net Guelbs — the black quartzite problem at Zouerate and 

metres between the small profit of S5m on a turnover of hills which dot the surrounding imported fuel is one of the 

border town of Inal and the 3660m last year, according to desert plain — are estimated at company’s biggest production 

Atlantic Ocean. Mr Mobamed Saleck Quid several billion tonnes — at least 


Heyine. the di rector-pen eraL 
He forecast a loss this year, 
however, because of “cata- 


The railway carries some 9m 
tonnes of iron ore annually 

from the mines at Zouerate to u- „ . 

the northern port of Nouad- JSSiSSS SSKS 

hibon and the Mauritanian ^ depreciation of the US 

military regime of Colonel 



regime of Colonel 
Ould Taya is concerned that 


company has been 




thewarcould xS^SlVcSS £Uged l to accept an across-the- 
the border and disrupt ship- board P® r cent price cut to 
merits. The Mauritania^ have negotiations recently concluded 


painful memories of the disas- 
trous war they fought with 
Morocco against the Polisario 
between 1976-78. Only two of 
the Societe Nationale Indus- 
trie lie et Mini ere iron ore 
company’s 26 locomotives sur- 
vived undamaged and exports 


with its main customers. Prices 
are now lower than in 1975. 

Although Mauritania is a 
relatively small iron ore 
exporter, compared with Brazil 
and Australia, the industry is 
vitally imnortant in terms of 
jobs and hard currency earn- 



MaairWwnln 

mm * 22® 


<*» — •jsssjt * prodt,cuon ** swr™ 

in 1974. most imnortant bard currency present rates. . . _ tion of a 9m tonnes-a-year 

The wall is an rinnai earner, after fish, yielding some The first P naseox the Guelbs enrichment plant, originally 
nrobiemtoattoe^nn^SSS S150m annually. About 95 per project storied production at El scheduled for 1990, could be 
EwKnut a? i? «« of Mauritania’s iron Rhein, 25 ^ kms northeast of delayed until the mid-1990s. 

exports go to Western Europe. Zouerate m July 1984, but The delay also provides the 
Sd lf 8 Despite the slack world various technical Problems at company with a breathing space 

SSTand £££. “aritei: «>e company plans to tf* ore ennchmem ptant have t0 service the $39Qm debt 

coste g competitive- expand exports through agg res- slowed the build up of produc- incurred in the first phase of 

n ' e zt a <sonr. _ sive marketing. It has set an t} on > according to Mr Joel the Guelbs project, before 

programme, export target of 10m this year, Fave-Lesage, the director of incurring extra debt The heavy 

Wo T ld Ban ** UP from 8.9m tonnes in 1986. «u£« and development debt sendee burden has been 

ai ^\ western donors, is The increase would be made The Guelbs ore has a much increased by revenue shortfalls 

t0 -rv c ° mpleted , by by developing new markets in lower iron content— 37 per cent due to production proble m.^. 

company has just the US, Turkey and Pakistan, compared with 64 per cent in The company is hoping that 
finished summing its labour Even so it would still be oper- the Kedia-*nd so needs more its financial backers will take 
°iL more t* 1 * 11 ating well below its 12m-tonnes- enrichment, thus raising pro- account of the difficult market 
30 per centof its 6,000 workers, a-year capacity. duction costs. situation and soften loan repay- 

“Production capacity is un- The company does not ex- Because of an acute shortage ment terms as well as providing 

affected as productivity has pect to be squeezed out of the of water a prototype plant using new money at a meeting early 

been raised,” Mr Moulaye market with the start-up of the an entirely dry ore enrichment next month. 


costs. 

The beat and sand pose seri- 
ous daily problems especially 
on the railway. Temperatures 
of over 50 degrees centigrade 
between June and August some- 
times bring the locomotives to 
a standstill, according to Mr 
Mobamed Abderrahmane Taleb, 
head of the company's railways 
division. 

Fortunately the slack world 
market combined with an up- 
ward- revision of reserves to 
the Kedia has given the com- 
pany more time to iron out 
problems at the El Rhein plant. 

As a result phase two of the 
Guelbs project, involving the 
development of a second mine 


LONDON 

MARKETS 

COCOA nhus <m the London 
futures market staged a 
modest rally yesterday as 
attention centred on tire 
operations of the BBer- 
nsUouai Cocoa Organisation's 
buffer stock manager. The 
fall to the «|mtotIaa T i 59- 
day indicator price below the 
" must buy ” trigger level en 
Wednesday had made it 
certain, rather than merely 
probable; that the ben would 

be active In the market, and 

this had a steadying Influence . 
The July futures prices closed 
£7 SO up at JHL263 a tome and 
the organisation’s daily 
indicator price also moved 
somewhat Usher. But the new 
daily kMBcater was tower 
than the one it i cp ia ced in 
the calculator of the average, 
so the ave rage itself fefl 
further to 1,596 spec i al draw* 
Ing rldns I tfliat a gtl uff ft 
triggerlevel 

The buffer stock manager 
announced last night that he 
had bought another 4.009 
tonnes of cocoa to the second 
hand market, the same figure 
as that which had left 
dealers “ unimpressed * on 
Wednesday. But some 
dealers were yesterday 
coining round t» the vi-»w 

that regular purchases, of this 
order could be s u ffi c i e nt to 
push prices hack above the 
trigger level. 

lye prices suppled by 
Amalgamated Metal Trading. 

ALUMINIUM 


INDICES l 

REUTERS 4 r 

m«j *cm» m.IWi «Boft5ffi5o 
XUmJuMaT — 1 1NU’. 

(Bne: September UHh-IN} 

DOW JONES 

Dow May pEs 
Jooac » t 19 


warrrcB*- 

•80 I age* 


Scot lBl.OOSSO.Vtl — 110.73 

nu .XBOflsmjej — llTflB 

(BMR Dm»*W STlttl-loft* 


MAIN PRICE CHANGES 


t*» g av4-ofM fata 


METALS 

AEmRSwunj 

Proa Market,. 

SXSuTid 

8 months 
CoM Troy 

Load caib. 

8 month! 

Nickel 

Free Met. N>n JUUila 
MHadhrai a _t* 147.15 . 
Platinum ex .-...*011.00 -. 

Ouicksilw: !*5SB8/a7S? 

StTwar troy oz. ~.i<ui3.«6p 

3 months, 

Tin 

traa Mkt—.. .. 

Tunostan j»Sl_*7 

wolfram niuiUlMVBO 

S mocrth«^~" 

induun 

oils' 

Coconut (tall} 
palm Malayan 



»1UM09. 

Mijasao.! 

[«lM/t«J+a5 £4XWMI 

JMKW.S 

+1 tB47U 
•* *Vji.r 

•780 


J+a 1*471.0 
■I 1171 




Oodtb <Phtn itsOdu , ^0" 

apyatwan cu JL) if 140 J j— ixP 143 
CRAINS 


Bartey PUt S«pteS7^5 I— QJM80.70 

Malu 11*3.00 -0144,00 

WhMt Put. JulyX121-90 i— OJ»£X33.80 
No. 8 Hard WlntJ S 4 i l 


Unofficial + or j 
UlOsaCpJtO — ‘UltfMLow 

; epartowio ; 

Crab f 84 ga t +13JS 
£ montbai 84050, *\0 WWW* 


OTHERS 

Cocoa Ft. July BSW jf'ITIITO 
Coffaa Ft. July £1871 1+10 ^XBSS.K 
Cotton Alnd.* 7BjiOo j+OJU;57.05o 


4163 

t-SA 'IS160.6 
UwpWtt4+a N TIpfcHo 


+U&.S14SXS 
+ 0 . 8 } 


Official daaina (am): Cash 8S3 - 4 
(834-4.5); tfanw mondia S&S-3 (8335- 
43); aanlanMmt BSC (834J5). Final hart* 
ctate: 860-1. Tumonc 19JB5 tsnnaa. 

COPPER 


Caa Oil July 
RubbarlKHo) 

Sugar (raw) 

* Unaimtad. t Far 76-Jb flask, o Cants 
a pound. * Cotton oodook. w Juaa> 
Aug. v July, u Mayslmo. a Juna-July, 


lUnofflc'l-for > 

Grads A | don — i Hlgti/lxrw 
— — - --! £ par taana 1 


Cut) 'SOB-O 

3 months S89-90 !+a»8M/8aS 


COFFEE 

n abuttal tradad In light ooariUona 
wnhm tfia racantly aatabllahad nag*, 
reports 0 renal Burnham Lambart. Early 
eommltion houM buying ataad+d iha 
mark at bin lackad toflow-tb rough. 
Without my now fundi marital factors 
tha maritat confinad ltsall to a narrow 
ranga In guta trading 


Official cloaina (am}: Cash 321 -Z 
(915-6); thrss month* 887-8 (8905-1): 
sattlamani 3Z2 (916). Final karb cMk 
890-1. 


COFFEE 


raaMrdari+ ori Bualnaaa 
1 Dona 


Standard 
Cash 
5 montha 


) 874-0 
i 036-6 


*, - 


Offi cial dosing (am): Cta h_ J83 3-4 
(H77SJ): tbraa e nontba 868-70 (866-8): 
Mtdammt 884 (878). US producar 
pnca* 70-75 cants par b. Total tom- 
owon 42375 toiraa*. 



13 38-1 MO 
1370-im 


1387-1UD I+10JJ1 


1396-1817 


J1416-1418 {-Oh 


1430-1480 

146O-W08 


+3 J3 


4-iad 13 76-1560 


+4.B 


+ 8.0 


1880-1X40 


+10.0) 1448 


1398-1378 

1407-1881 

1491-1818 


1448 


LEAD 


1 Unofficial +or 
Icloae (pm) — 

M0IUW 

j £oer tonna 


Cash [436-40 1—7* 

3 roontha, 387-7 JS |+SL78 ! 

44W«4« 

3881363 


Salas: 3L969 (3,288) lota of B tonnas. 

ICO Irefi cat n r prtaaa (US canta par 
pound) tar May 20: Comp, dally 1979 
113.04 (112.56): IMty avarega U143 
( 111 ^ 1 ). 

COCOA 

Futuna atoadiad •ligbtty on iwwa of 
buffar node (ntarvaniion in tha market 
but tradad in a narrow ranga through- 
out a vary dufl uni o n , rapona Gilt 
and Duffua. 


Official do oing (am): Cult <HM 
(450-1); thraa months 387.6-8.S 
(383.5-9); aatzlantaat 448 (461)^ Final 
kerb done 388-86. Turnover: 11X00 
tonnas. US spot: 24-37 cams par lb. 

NICKEL 


Y— trdajrat 

■demto 


j£ partonnuj 


May 

July 


Unofficial + or ' 
deso tp.m.1 — iKIgti/Urer 
£ par tonna I 


Sept 

Dec- 

March— 
May-...— ... 
July — 


+ °r 


Baatneaa 


+7J» 

+7.0 


1943-1949 
1969*1964 
1969*1970 . 
1997*1998 1+8.0 
1393*1888 [+6.5 
1343*1348 +7.6 
1369*1368 1+5.4 


IMS-Uttl 

TXS&-UE4 

i*»-m7i 

1X99-1294 

18X8-1820 

U46-1840 

1883-1899 


cash aoKj-eoe; +2 
3 month* >9606-15 ', +1 


{aefioosM 


Official closing (am): Cash 2800-5 
(2620-30): thru months 2815-6 

(2641-8); aattlamant 2806 (2630). Final 
kerb close: 2500-5, Tumovsn 2.436 
tonnes. 


ZINC 


High 

grads 


lUnofficial 4-or 
;close ip.m.) — [HlgtuUnv 
f £ per tonne 


Cash 487-8 
3 months 1485-4 


i +l 

I +9 


Sales: 2.102 (3.678) lots of 10 
tonnes. 

ICCO Indi ca tor prices (SDHe per 
tonne). Dailv price for May 21: 1575 JO 
(1565J1): 10-day average tor May 22: 
1696.48 (1598.30). 

FREIGHT FUTURES 

With no physical naws to Indues 
boyars, (avals drifted (n tflia -conditions 
to close with small losses. The Gulf/ 
Japan fixture on Wednesday rumoured 
at SI8J30 was confirmed, reports Clark- 
son Wolf!. 


Close i High; Low | Prev. 


14C8W89 


Dry Cargo 


Official closing (am): Cash 481-2 
(499-500); three months 488-9 (493.5-4): 
URlamant 492 (500). Final kerb close: 
481.5-3. Turnover: 13,175 tonnas. US 
Prims Western; 41.50-45.75 cents per 1b. 

TIN 

KUALA LUMPUR TIN MARKET: Cioaa 
16.73 (15.69) ringgit par kg. Up 0.04 
ringgit par kg. 

SILVER 


July 

Oct 

Jan. 

Apr. 

July 

Oct. 

Jan. 

April 

un. 


1094 11040/TOU| 1039 

1030/1037 1030/n»1039/1040 
1010(1030,1019/ MW 1096 


1055/1050, 

930 

960 

070 

1110 

3084.8 


1097 i 1040 
900/930 : 946 

— i 950 

— . 970 

— ■ 1090 

— | 1087.8 


PimaBcisl Tfooes 


His markets 

PUT TRADE, •*»»“; 
commission house «cuu£ 
etted precious 
to ctriy trading, a SS 
DNMt Bvnhwm Lvabert. 
Goto, stiver and 
qnkJ dr atode Zhe Ior« <* »e 
day, but! trade end book 
poxt tows prwnpt^ 

abut-ewexiBg as the market* 
«n dosed -With pared tosses 
n the -day. Copper future* 

traded indiffereotiy, b«t 
. gbottcovertog towanf too 
dose saw prices recover as 
the ssttket closed marginally 
htober. A reco ve ry to au 

prices coupled with tool 
short-covering steadied crude 
oil futures after early losses. 
Cocoa futures weakened w 
initi al house sew- 

ing. hut prices rallied on 
trade buying. Coffee weak- 
ened with local and com- 
mission house scDlnc- Cotton 
futures rallied strongly on 

conunisritti house buying as 
the market made a technical 
break to the to ee of scale-up 
trade seUtog. Wheat future* 
lacked any rign i fleam feature 
despite reports et Soviet 
Union baying and reasonable 
export business- Malm 
futm os raffled on a combina- 
tion of firmer premiums and 
concerns «nr dry weather. 
The soyabean complex also 
firmed with added impetus 
from anticipated demand. 
Fork bellies tended to con- 
solidate, but to cattle and 
hogs short-covering and fresh 
buying emerged 

NEW YORK 


S3 1587 


S; 

«*« 


ssr ss us s» 

gr* g» gs a p " 

Oct f~-’Z a* tB US tO 

Er SS S 

qaanoT JVice o-g 
Prev 
l»*0 
117 W 
1=*W 
wS.iO 

IPN 


July 

5*91 


iyt<* ***» 
iff to mm 
ymj» 

it* » *ass 


Citfi* 

190 IS 
ires 

i»» 

M*fCh 1»00 

M ay 1W 00 

FLAtUUSU 0^ trey »m. */<a*r 
cwure "pjg» *“ 

*** g; 

oS *Hft «*• 

s* «=-2 

July 
siEvtSTSo 

pyw n?? 

■,;« ae* o »# 

iui »; s* 
B2fl 8 967 0 NK 8 

WJ ^1* ■g'a 

uti to* 

Si 

susa -* --.t 

icm s vn 9 mso 


‘Mari' i*» 
sad 

tni tins 

u*1 *s° 

MB «J*o 9000 

mi ews »“* 


ClOM 

■77 9 
■79 S 



iuOAIt WORLD 'll ' 
112.600 «>. cehtWIb 


Close 

Prev 

July 

719 

e N 


730 



7.96 

7 30 


7.76 

7 U 

March 

7*tft 

7 76 

May 

COO 

7.90 

July 

■.» 

■ 04 

Oct 

8.32 

III 


Harii Low 
7 33 S87 

7M 79S 
IN 7-M 
7P m 
71* 

ao« in 
■ r* ir 
aJt 9.10 


CHICAGO 


ALUM.NIUM 40X00 lb. OWKS/ttl 


May 


Ctua* Prew 


won 


*** 

Sept 


May 


72JZS 

70.76 

__ 

— 


89.70 

88.99 

_ 

— 

June 

<8.28 

67 JO 

<8.60 

88.00 

July 

*726 

IMO 

<7 no 

■7.00 

Aug 

85.76 

68.16 

M.40 

<8.06 

Oat 

M.7S 

64.16 



Dae 

68.76 

88.18 

. - 

— . 

Feb 

86.76 

68.16 

— 

— 

April 


UVE CATTLE 4O.0PO 

Dou riw High 
June 88.32 ^ 

lug 37.00 30.12 4< 97 

5« W.OO «o a si i» 

Dad SIM 91.40 saw 

Fab 81.90 0190 82 20 

April 33.20 6 2 » *9 » 

June 6 2,51 S2.W 

UVC HOGS 30.000 l b*, caw aftb 


Law 

•nig 

sn 

MU 

I? TO 
Slab 
32 70 
U 2b 


COCOA 10 toonea. S/tu iwm 


Jim 

July 


Cloaa 

ss.ao 

B3.SZ 

49.27 

43.70 

4336 

«J7 

40.10 

42.30 

42.00 


USD 
S3 15 
4S97 
43 77 
49.M 
42 22 
40 18 
42 60 
42 00 


S?2* 
*4 4* 
4»RS 
44 "W 
M “ * 
43 22 
40.79 
42.30 


low 
urn 
UM 
■* a* 
49 40 
43 50 
42 22 

40 07 

41 <0 


July 

Sept 

Dec 

March 

May 

Mr 

Sept 


Mtah 


1948 

1M7 

1988 

1*46 

M7I 

1980 

1988 

W8 

2018 

9017 

9094 

901* 

9066 

1069 

908* 

9063 

2011 

9019 

2084 

9061 

2104 

2106 



9128 

2132 

— 

— 


COFFEE “C* 37X00 to. MQ«a/ib 


Close Pm kHph 


Mr 
topt 
Dae 
Man* 

May 

U COPPER 26.000 ta. oaAta/lb 


Law 


M4l^ » 

6X00 ou win. aama /S S »» b usha l __ 
Cloaa Prav Hrgh 
July ms i»4.e in* 'mo 

Apt 1X0,6 147.0 1914 we 

Dae 194-« 13 ! W* ■ '«• * 

Man* 201.6 197.4 »i 4 1670 

May 204.2 200.0 SO* * 200 0 

July 206.8 201.4 2U3 201. » 

Sept 204.6 202.0 304 8 304 C 


msc 124.14 . n£n ***n rowt ubaies sqm o». wm;ib 


123.49 
US JO 
125.78 
126.83 
128.61 
128.01 


1240* 726.00 UUS Prev~ High U 

12S.OO T28J0 124.00 May 72.00 71S7 73 3* 71 tt 

128.13 729JHB 128.78 BB.62 SB 90 «9 SS 83.90 

127,76 moo nut A«« 94 , 7 s MBS uu ate 

198*76 “Feb S7M 57.77 M 80 S7 JO 

■MM® — Mwah 87. U 67.06 6796 S7» 

May 88.00 BS.OO MOO M08 



Cloaa 

Prev 

Utah 

Low 

May 

67.40 

87.40 

STM 

mm 

Jam 

*7.00 

87.00 



July 

<6.00 

MJO 

8840 

auo 

Sapt 

86 M 

66.5C 

•6 JO 

64JB 

Dec 

15.80 

88.78 

8CJ9 

8KJ0 

Jan 

■8.6S 

66 J® 



Mare* 

<6.76 

66.18 

88J8 

68J0 

May 

mm 

662* 

66.06 

■8JS 

July 

66.26 

68J56 

88 JO 

8520 

Sapt. 

. 66JO 

.4640 

- •— 



COTTON <0.000 R>. ceots/lb 


Ooaa 


High 


July 

73,48 

7148 

•73.46 

71.40 

Doe - 

72AO- 

•mao 

32J* 

7TJ* 

Dee 

72.1* 

70 JO 

72J0 

70.86 

Mere* 

72.80 

71.02 

73.02 

7*32 

May 

73.30 

71.40 

73.40 

71 JO 

July 

73.53 

71 JO 

73. to 

73.00 

Oct 

69.90 

SOM 

« JO 

6580 


SOVABSANU 


t£ 

s? 

Jan . 
Mare* 


Cloaa 

689.8 

884.0 
BSS.0 
■71.0 
E78.S 

687.0 


699.4 


Prav 

649.0 

862.4 

882.0 
6KB 0 
SU.6 

674.5 

690.0 

681.0 


High 
680 4 

585.0 
MS.O 
673 0 

590.0 
597.4 
5M.O 

607.0 


Law 
547 0 
3410 
M1-0 
UiO 
6*4.4 
873 4 
SMO 
6S7.0 


SOYABEAN MEAL 100 tana, S/M* 


CRUDE OIL (UOHT) 

42.000 US gallons. 3/barreTa 


Mr 


Oct - 

Dae 

Jan 

Man* 

May 

-i riy 

Aug 


ISSJt 

1MJ 

109.6 

171.0 

172.0 

173.0 

170.6 

178.0 
177J 

177.7 


10241 
103 J 

194.6 

106.6 
157.2 

109.6 

173.6 
172.0 
172.0 
172.0 


wgii 

uu 

1*9-6 

109.6 
171.0 
172-9 
TOO 

178.6 
TOO 
177 0 

177.6 


162.2 
102 9 
184 0 
I960 
1SS-S 
1990 
171 S 
TOO 
T77 5 
TOO 



Latest 

Prev 

Mgb 

Low 

July 

19.16 

1»J3 

18 J2 

18 JO 

August 

■ 18.88 

18.74 

1>JS 

18.84 


18.78 

18.52 

nun 

18J7 

Oct 

18-71 

18 J» 

18,78 

18 JB 

Nov 

18.68 

HM 

W.70 

18-66 

Deo 

15.07 

18.64 

i8.es 

18.51 

Jan 

18.62 

1B-S2 

18.62 

18J3 

Feb 

18 M 

18.50 

18 . 5 a 

ia.se 

Marob 

18.51 

' . 

HL51 

18.81 

April 

18-48 


mM 

15-48 


SOYABEAN OIL 00.000 Iba. aan 


Cloaa 

17.09 

17.20 
17.41 
17.90 
17 JO 
17.99 
19.28 
18.56 
1S4B 


COLD 100 troy or. SI troy n 


July 

Aug 
Sapt 
Oct 
D ee 
Jan 
Maroh 
May 
July 

WHEAT 

MOO bu min. canta/80 lb buaW 


19.99 

17.0S 

XIJ9 

17.48 

17.17 

17.W 

18.19 

1S.4S 

IMS 


HH* 

17.08 

1752 

17.46 

17.SX 

77.96 

17.99 

19*1 

19.50 

19.50 


Law 
11.78 
7*97 
17.16 
1738 
17 46 
17.9* 
19 IB 
19.80 
1990 



dose 

Free 

High 

Low 


Cloaa 


Htah 


May 

409-5 

4723 

471 J 

470.0 

July 

290.0 

290J 

791.4 

Taa.O 

Juna 

•70.3 

473J 

472.8 

4«.7 

Seat 

783.4 

74S.0 

?9«J 

791 4 

July 

•73.1 

475.1 

474.0 

474.0 

Dec 

301.0 

mi 

301 4 

798 0 

August 

478.3 

478 J 

•n.8 

474J 

March 

307.4 

701.4 

302.4 

300 0 

Oct 

492J 

485.2 

4*4-6 

400.0 

May 

297.0 

791.4 



Dec 

488J 

491.4 

490 J 

486 J 

July 

278.0 

290.0 



Feb 

496J 

<98.2 

497J 

483 J 






April 

602.0 

604.9 

603J 

600.5 

SPOT PRICES—- Chicago foctas 

lard 

Jure 


611.9 

611.0 

608J 

15-00 


Oct 

523.7 

625 J 

524.0 

B21J 

and Harman affver bulUofl 883J 1910.01 

Dec 

531.1 

1 634 J 

532.0 

629.0 

came 

par troy 



Fab 

638.5 

541.6 

540.0 

638J 

319-23 (318-23) cents par pound. 



SOYABEAN MEAL 


Turnover: 17* (3S1). 

GRAINS 


Yaatordi'yal + Off BueJiMSS 


oloaa — 


Lataat 




dona 


Juna. 


Old crop wheal, after an unchanged 
■ran. firmed 60p before loving early 
Silver waa fixed 2TJ5p an ounce gains on merchant and shipper aeHing Au^uat--- 
lowar tar a not delivery in tha London » «*!*■ on an aaajer note. Wd crop , Oototw»-. 
bullion market yesterday at 533. 95p. barlay again faltered on stop-loss aalh 

Ing. trading and cloaing at 60p down. 

New cropa raflecud trade uncertainty 


£ 

per tonnaj 

1X5.B-1X4.I 

122.0-122.5 

1XXJLT&L8 

12BJ-12H.B 


US cant equiveleate of tha fining lavala 
were: apo: 8975c. down dO^c; thraa- 
month 916c, down 41.7c; abi-manth 
330.70c, down 42£5c; and 12-month 
965c. down 44.15c. The metal opened 
at 536-5400 C902-907c) and closed at 
52S-529p (885-890C). 


+axoia2.s 
- 121.8 
+0.75(133.5 
+0.4S 136,5-IMJI 
+1.10 189 .0 


mo-tsaj! 

1S73-T28.B — 


over farm price Incoma, aaaing 30p 
before regaining losses to cloaa steady 
on consumer support, reports T. 6. 
Roddick. 


SILVER 

Bullion 

+ or 

par 

Fixing 


trey ox 

Price 



ULL 

p.m. 

VJnofflo 


. +o, 

‘11 


WHEAT 


or [Yaet , rdy*ai+ or Yset*rdy*«:+- or 

_ Mirth * otaaa 1 — cloaa — 


July. 


Spot i533J)5p .-21JP B23p i— IS 

3 montne.l540.25p -Zf.» 689p (—17 Smu.— 

6 momiia^5B4,lSp .-X2.il — ! — Nov.— 
12 month«i577JOp I-X2.7: — « — jan. 


LME— Turnover: 0 (1) Ins of 
KLOOO t ». 

Three months final kerb: 534-flp. 


Mar. - 
May ... 


BAULKY 


Dec.: 

Fab 

April .— _ 

June -— -.1327.5-123.5 |-Q^« — 

' Salaa: 230 (254) Iota of 29 tonrtM. 

SUGAR 

LONDON DAILY PHICE—flaw auger 
*175.00 (£104.00) down £3.50 (down 
D .50) a tonne for Juna -July delivery. 
White auger SI 90.00. down 33.60. 


CRUDE OIL— FOB (> par bsrraf)-~duna 

Arab Ught ) 

Arab Heavy I 

Oublm.;........ J 7.06-17.1 5*t—0. OB 

Brent Blond lB.85.18.6Sf-0.03 

W.T.I. ilpm aet)....- 19.78-19.o3-a 176 
Fonoadoar"- ■ - 1 ^ 

Urals (olf 


i!®£l“ j = 

irth Wr 
V olf (I 


180.60 

181.90 

+O.W Z09JM 
-0.881 — ' 

— ! 97.85 

-0J6 — 
—0.25 No. 6 

raartfarj Province ) Bindiwaa 

108.90 

— 1 100.58 

-0.16 con; 

cloaa l cloaa } done 

306.40 

— : 108.60 

-0.10 tract 


110.80 

— 1 100,80 

-0.08 

6 par tonna 


PRODUCTS— North Wait Europa ’ 

Prompt dellvary elf (8 par tonna) 
Pramtam gnao«n«..j 0004031 -1J5 \ 

JJHJV fua! on toft-ioei — &.s 

Naphtha — { 1 63.1871 —1 

* July 

Patrolium Argm vitinatM 

HEAVY FUEL OIL 


Month 


JYaejanJay;+ or , 
{ otaaa I — 


flu sin m 

dona 


GOLD 


Gold fail Y7\ an ounce from Wad* 
nasday'a close In tha London bullion 
market to finish at *463*4 -e70>». The 
metal opened et SdTZ-472 1 , which 
proved to be tha day'a high and 
touched a low of S467V466V A firmer 
dollar trend following market approval 
at the debt provision made by Citicorp 
tended to deprase gold. However, it 
retained a bullish undertone end much 
depends on today’s release of GNP and 
inflation figures. 


Business done — Wheat: May 121.00- 

20.50. July 122.66-1 .90. Sapt 100.86- 
0.80. Nov 102.80-2.80. Jan 1O6.45-&20. 
Mar 1tfl.9S-7.7S. May 110:8Mfl.75. 
Salas: 2S7 tan of 100 lonnaa. Bdriey: 
May 105.00. Sapt 98.00-7.8S. Nov 
100.35-0-30, Jan. Mar and May un- 
traded. Salaa: 24 lota of 100 lonnaa. 

LONDON GRAINS— Wheat US herd 
winter 134 per cant Juna 83-28, July 
33.00, Aug 92.50. US No 2 soft red 
winter Juna 91.26, July 91JJ0, Aug 

91.50. French 11*i-12 par cant May 
143XD. English feed fob Jvm 122,60 
re ported paid east coast;' May 122.00/ 
122.50 buyers/eaJlera. Juna 122.50 


UB 8 


Aug- 

Oct. — 

Doe 

Mar. — 
May. — 
Aug.~.. 
Oct...... 


; IM.I-iai.CH 157.Z-IS7.ft I82.B-15fi,B 

1 S-5" 1 B* n - 194.0-144 a! 1C92-1KA 

170.B-172XI 1B7JMB8S IBM- 
17U-TOJI 1 . 17U.172.4l 177.4-1T1A 


i 

iPar tonnaj 

June...] 

t • 

J 1D6.00 O.BD 1 100,00 


GOLD BULLION (fine ounce) May aa 


Cloaa 84693* -470 1« (£979^-980) 

Opening — 84.72-4T9i« (£S6aij.-2flLU) 

M'n'g fix- 6468.60 (£278J32B) 

Aft'n'n fix 8469.10 (£9793726) 


GOLD AND PLATINUM COINS 


Am Engle- 3485-488 (£28*73* -2005* 

Maplolaaf 84631g.4861a (£206-2895*1 
KrieVnA. 5474-477 i£9B91f>a84) 

1« Krug-.. BS4Blg-949tg (£148-146^) 

U Krug..- 8194la-l96l« (674-743*) 

Angel SOaOle-OBBlt (£286-887) 

mo Angel 547-52 (£2640) 

New Bov- BllQig-lil la (£66-663*) 

Old Sov.... BllOia-lli (£6934-6614) 

S 90 Eajjja 9610-660 (£80S3e-383ia) 


Salas: ZASO (2.477) lota Of 60 
tonnas. 

Tata and Lyla dellvary price tar 
g re nutated baaia auger waa £209.00 
(£208.50) a tonna for export. 

International Sugar Agreement— -{US 
ctwite par pound fob and stowed 

Caribbean porta.) Prices for May 20: 

aeUar. Sapt 109.50/108-00, Oet/Oac PSt^ra’lS'! 8,78 1W *V *varaga 

1 05-75/1 0C.2S. Jen/March 108.75/110.50 ”■„.«, oUc. . . 

buyera/aallara. Make: US No 3 J° nn n 8 > : ^“0 1137/ 

yallow/Frencb mnahipmant east coast ul' 

May 149.00. Barley: Engllah feed fab May 1250/1266, Aug 

May 111.50, June 119J0 sellara. Aug 
89.00/99.50 buys ra/aallare. Sapt 100.50 

sailer. Oa/Dac 104 £0/1 05-00 buyers/ RUBBER 
iillafi. 

HOCA — Locutlone) ax-farm spot PHYSICALS — The London market 
price*. Feed Barley: S East 108.10. . • b ® u t unchanged, attracted 

W Mid* 106.00. N Wear 108X0. The JJ. 1 * 1 Intaiwn throughout tha day and 
UK monetary coefficient for tha wsak P 0 *™ R“|f* uncartaln, rapona 


* 1*1 iota of 100 lonnaa. 

GAS OIL FUTURES 


Neb lot 


8635-643 


(£377-5631 


beginning Monday May 25 is oxpoctwd 
to be unchanged. 

POTATOES 

Tha market mi steady, slowly 
moving upwards throughout tha day 


MEAT 

NEAT COMMISSION — Average fat- 
nock prices at representative markets, 
GB— Cattle 101. Up par kg Iw (+1.46). 
gb — S honp 264.70p par kg eat dew 
( — 19.38). GB—PIqi 79.92a par kg iw 
(—2.83). 

FUTURES— Live cattfs: Juna lOOJSO. 
salaa 5. 


in thin volume to close at Ure hlgha, Jjftt Btt-WI, July/Sapi 58&-S9V rIi... 
reports Colay and Harper. Ml - “*■ 


Lewie end Pear. Closing pr jc*e 
206.0 (203.0), 



Ml.' 


Month 

1 

Yeetnfy'a or 
oloaa ( — 

Bualnaaa 

(tan* 


U8B 

Por tonnaj 


Juna™..„_, 
JUiy. 

1 

102,00 > + l,M 

ISUA-U.N 

Aug 

sSS'SS IM.JMLM 

JSS'SS flM.UUUMI 

_ 

— 

-• 

Turnover: 
TOO tonnes. 

(3,18a) 

tata at 

Emap awards 

“ 


238.0 (236.0); SMft 20 ^ 

js»b 6 m: 


1 Yesterday* ei Pravioua IBuainaea 
Month I does t otoao I dona 
C par tonne 

Nov I 9lW 90.6091^80-9 1 JK3 

Fob. 1 300-BOj 100.30 


OIL 

Brent prices recovered f fam Mrtlf 
***• ^ wodBrtt* in da cofieansraiad 
July. July WD opened 13* dSwT 
flyman but tradad He up n ij# 


Apr. 186.801 JWlTO UCLBChlSEM EOT. PatnaiournTp'rodiSta” prtaaa^ taS 

lK8.no lXQ.nn Otunr j ^ '*11 Oh 


May 140.60! 158.00 139,00 

Baits: 290 (213) KK* of 40 tonnas. 


graanr availability due w mot* Midrib 
Eaawm oil being r.flnad it? Eu«S£! 
Patrolium Argos, London. ^ 


contract to TNT 

TNT NBWSFAST lug *tm m. 

hImM CC Ar t !«? andl ® dtorti- 
i L? 2 * EMAP1 te*. 

miner «nfl i«isiu' e titipf. In 

tftotrihStiw, 

The decision end* ■ 34re+a r 
MWWlBtlOn britteSn Fnvea 

lB 1 volv « cbUec- 

S 55 a. a jrisg^ — 


4 




/ 


r 


■ .* 
4 


* . t 

* '< 


■%. ; *.-■ 




f - i 


l - 

<•• 3 


• • :i 

-•■a 

•• i j 

." 1 

; • s 

i 


:< 


' ‘e j 


I- 


„ ai 


( - 


< V 


flaancia! Times Friday May 22 1987 

CURRENCIES, MONEY & CAPITAL MARKETS 


41 


FOREIGN EXCHANGES 


Dollar and pound steady 


THE* DOLLAR finished slightly 
firmer ©well but mainly as a 
result of shortcovering, This fol- 
lowed a change of sentiment in 
market attitude to Tuesday’s 
announcement of a large debt nro- 
vision by the US bank Citicorp 
The realisation that Third World 
exposure ought to be downgraded 
from the book value was greeted 
aa a breath of fresh air and white 
the. .implications for other US 
banks was loss than clear, it 
seemed that confidence in the dol- 
lar was not Impaired. 

In addition there was little 
Incentive to push currencies out- 
side their recent trading range 
ahead of today’s revision to US 
first quarter GNP figures. Particu- 
lar attention was likely to be paid 
to the implicit price deflator, pro- 
viding as it does, a good indication 
of the pace of inflation. 

The dollar closed at dm 1-7770 
from DM 1.7745 and Y140.45 com- 
pared with Y 139.80. Elsewhere it 
finished at SFr 1.4590 from SFr 
1.4540 and FFr 5.9475 from FFr 
55350. On Bank of England 
figures, flic dollar's exchange rate 
index rose from 99.7 to 1005. 
STERLING— Trading range 

against fire dollar in 1887 is 1.6385 
to 1,4710. April average LB316. 
Exchange rate index 7X7, 
unchanged from the opening and 
Wednesdays dose. The six months 
ago figure was 87.9. 

Sterling, remained' very steady 
throughout the day. Earlier it had 
lost a little ground as the market 
reacted to an opinion poll which 
suggested a narrowing of the Con- 
servative lead in the run up to the 
general election. However, senti- 

£ IN NEW YORK 


ment remained basically firm and 
wiui so much good news already 
written in to sterling’s value, -the 
odd hiccup was always likely to 
occur. The pound closed at$1.6795 
down from $1.6835 and DM 29850 
compared with DU 25875. Against 
the yen it was firmer at Y236 from 
Y 235.25 and SFr 2.45 compared 
with SFr 2.4475 .but eased to FEr 
9.9675 from FFr 9.9925. 

JMfAlW —Trading range against 
Uw dollar in 1987 is 1-9305 to 
WS90. April average 1.8112. 
fjehange rate Index I47.fi against 
1429 wonftt ago. 

.,Tlj® r e was no intervention by 
the Bundesbank at yesterday’s fix- 
ing in Frankfurt when the dollar 

DKL7777 from 

DM 1.7697. Trading volume was 
low because most dealers were 
content just to square off posi- 
tions ahead of US GNP data and 
the long weekend in the UK and 
US. Despite the shorwerm 


improvement in the dollar, trad- 
ers still retained a bearish under- 
tone, stressing that basic under- 
lying ftidamentals still pointed 
towards a dollar decline. The dol- 
lar closed at DM 1.7780 from 
DM L7685. - 

JAPANESE YEN — Trading range 
against the dollar in 1987 is 159.45 
*® 13&3S. April average 142.86. 
Exchange rate index 2249 against 
204.2 six months ago. 

Trading wgs rather subdued in 
Tokyo with no fresh factors to 
influence the market The dollar 
finished slightly firmer on short 
covering as- traders took a more 
relaxed view of Monday’s debt 
provision announcement by Citi- 
corp. The dollar closed at Y140.Q5 
compared with Y 139.75 in New 
York and Y139.50 in Tokyo on 
Wednesday. The relatively narrow 
trading range was also a reflec- 
tion of market caution ahead of 
today’s first quarter US GNP revi- 
sions. . . 


EMS EUROPEAN CURRENCY UNIT RATES 



Ecu 

ctttral 

rates 

Currency 
amotaits 
against Eat 
May 21 

% dumgo 
from 
central 
rate 

% change 
adjusted lor 

Divergence 

Until % 

Belgian Franc — 
Danish Krone - 
German D-Mark ___ 

Dutch Guilder 

Italian Lira 

42.4502 

7 X 5212 

2.05853 

6.90403 

231943 

0 . 76 B 4 U 

148338 

43 X 1 S 3 

7 X 0817 

2 X 7615 

6.94326 

233878 

0.775309 

1505-72 

+131 

—036 

+QX 6 

+037 

+ 0 X 3 

+ 0.90 

+JL 49 

+ 0 X 5 

-L 22 

+ 0 X 0 

- 0 X 9 

+ 0.17 

+ 0 X 4 

+130 

± 1-5344 

± 1 X 404 • 

± 1 X 981 

±13674 

±13012 

± 1 X 684 

± 4 X 752 


Change an for Ecu, therefore positive change 
Adjustment calculated by Ftawvdal Times. 


denotes a weak c u rren c y. 


POUND SPOT— FORWARD AGAINST THE POUND 



ig 





* 

r 

i 




EEiO 






IjsmM 





Forward premfc u m and discounts mriy u the 
U 9 . doiUr. 

STERLING INDEX 



May 21 

Prevftms 

830 

am ...... 

73.7 

73.7 

9.00 

am ...... 

73.7 

73.7 

10.00 

ate 

73 X 

73.7 

1 UJ 0 

ora 

73 X 

73.7 

Won. 



73.7 

73.7 

2.00 

pm 

73.7 

73.7 

2 X 0 


73.7 

73 X 

3 X 0 

pm 

73.7 

73 X 

4 X 0 

Pm Mi.ee 

73.7 

73 X 


MV 21 

Day's 

spread 

Clare 

One rnwnb 

% 

W 

Three 

merehs 

% 

M. 

US 

2 X 830 - 1 X 770 

1 X 790 - 1 X 800 

OJfi-AlBc pm 

139 

051 - 0.46 pm 

136 

Canada __ 

2 X 060 - 2 X 730 

2 X 64022650 

U 4 -GX 5 C pm 

030 

111 pm -082 dfcJ 

0 X 8 

Netterioodi . 

335 V -337 

335 V 3 J 6 * 

Ve^Bpre 

537 

pu 

520 

Brig km: 

6 L 79 X 2 X 2 

6 L 8 S 61 . 9 S 

10 - 7 c pm 

1 X 5 

28-23 pu 

1 X 5 

Denmaric ___ 

)t pfun Pi. 

1123-1124 

lVl^are cOs 

>174 

3 V 4 Vfe 

-134 

Irefand 

1 . 1125-10180 

U 160 -UL 17 Q 

038-028 p dh 

>247 

040-060 & 

179 

W.Germaqr. 

2 . 98 - 2 . 991 . 

2 . 98 - 2.99 

IVlWpm 

101153 c (fls 
78030 c dh 

4 J 7 

3 ^ 3 ^ 

446 

Spate 

209 X 620938 

209 X 8-20937 

- 5.97 


-739 

Italy 

23 AZ>z-Z 16 Q 

2164 ) 2-216513 

1-4 Bre tfe 

-139 

6 -n * 

-157 

Norway 

UX 8 -lU 2 k 

n l t.ii ii 

4 V 5>2 ore ifis 

-533 

15 V 16 dk 

- 5 X 2 

France 

9 . 98 >«- 10 X 0 

9 . 96 V 9 . 99 J. 

Vreeim 

030 

VHiPd 

025 

Sweden 

UL 45 >rlO- 48>2 

1045 ) 2 - 1046 ), 

VI on* 

- 0.93 

2 V 33 .TW 

-112 

Japan 

235 *z*Z 36>2 

Z 35 > 2236 )] 

l-’i y pm 

437 


4 X 6 

Austria 

20 . 9621 X 2 

20 . 96 - 20.99 

8 V 7 )j cpm 

434 

23 V 2 M.P* 

430 


244 )z- 245 i 2 

244 V 245 *z 

I VI c pm 

530 


4 X 9 


Beiglafl rate b lor convertible francs. Financial franc 6230 - 6220 . Sbc-mooth forward dollar 081 - 
0.76 c pm. 12 -nmmh 191 - 0 . 41 c pm. 


DOLLAR SPOT-FORWARD AGAINST THE DOLLAR 


■ • ’»-> •» 

CURRENCY RATES 


May 21 

Bays 

snad 

Dost 

One month 

% 

PA 

Three 

months 

m 


■- 

Bate 

Special 

EurupH. 

UKf 

16770 - 1 X 830 

1 X 790 - 1 X 800 

021 -OJBc pat 

139 

051 - 0.46 pro 

116 

-■ -• * : t 

liarZl 

ret* 

Draofo 

Cwrrocy 

Irrlwvtf - 

15037-15073 

15055-15065 

kSOOXlfcpm 

438 

US -138 pm 

327 



-% 

mgN» 

Unit 

Canada 

13455-13490 

13470-13480 

0 X 9 - 0 J.lt dts 


035-038 dh 

- 1 X 8 




■FSIH9 


NcthcriMdl . 

1 . 9990 - 2 X 050 

2 X 0102 X 020 

037 - 0 33 c pm 


125 - 120 pm 

245 


U 3 . 0 oft»r__ 

9.S 


136723 

Btegfom ___ 

36 . 79 - 36.90 

36 X 0 - 36.90 

3 pm-Par 

049 

94 pm 

0.71 


fr-lTitf 

730 

m 

157342 

Denmark 

667 V 6 X 9 A, 

6 X 8 V 6 X 9 U 

lXO-L 7 Dort ifis 

-242 


- 2 X 9 


feMitaSdLw 

■ 4 

163572 

145997 

W. Germany . 

17745-17800 

13765-17775 

056 X 53 pfpm 

3 X 8 

177 - 172 pm 

3.93 


OrigteuFtew. 

' 

482127 

43 X 153 

Portugal 

1381 x ^381 

138 b- 138 (i 

75 - 105 C dn 

- 7.79 

250-300 ds 

- 7.93 

’ C 

omfehttere _ 

r 

8.75030 

7 X 0817 

Spain , 

124 . 43 - 124 XS 

12443 - 124 X 5 

60010 c dh 

-819 

225-275 db 

— 8.03 


OeeticlwMarit 

3-0 

232 S 7 

2 X 7615 

Italy 

1286 - 1290 >z 

128 BV 12 B 9 t« 

26 O- 330 Hre dls 

- 2 X 5 

7 X 0 - 9 XOlfis 

-248 


Netk-feAfer- 

S 1 

262175 

233878 

Norway — _ 

660 X 62*4 

661 * 2 - 6 X 2 

UMOOoe* 

- 6 X 1 

10 . 70 -H 20 db 

-663 

'*.■ im 

French Frmic.. 


7.7822 

6.94326 

Pntfo 

5 . 93 V 5.95 

5 . 94 ^ 5.95 

045 - 035 C <fa 

-101 

0 . 95-120 db 

- 0.72 

:* - V 05 

ttiBMLh«__ 

ux 

WA 

1505.72 

Sweden 

622 -fu 23 l 2 

622 )zX 23 

0 . 98 - 125 ore db 

—235 

330-330 tSs 

-232 



•84 

183.16 


Japan _____ 

139 - 95 - 140 X 0 

14040-14030 

042 - 037 yenpm 

338 

134-129 pm 

175 

• 1 ^ -s 

iwalih Nate. 


162-878 

145378 

737183 

Austria ___ 

1247-1251 

1249 V- 1250>4 

33 O 3 J 0 gropm 

337 

1050430 pm 

321 


TV 


14550-14605 

14585-14595 

0530 . 48 c pm 

435 

139-134 pm 

3.74 

C 

Swtofrapc. _ 

33 

190810 

170299 

154.985 

0 J 7 SQ 9 - 

tUKandlreta 







... it 

. : «■ 

ittfoav; 


WA 

iglhe indlitoul ferwpqr- BoIgUwreM to far ca avertible fceacs- Fwandal Irene. 36 . 9537 X 5 1 


*CW0R rate' tor Mfw 20 : XMSW 

currency Movements 


EURO-CURRENCY INTEREST RATES 


Mar 21 

‘ Banktf 

1 fifotond 
fade* 

Mm gin 
Guaranty 
Changes* 

Steriteg 

73.7 

- 19.9 

U-S. Dollar 

1003 

- 6.7 

1 J 

763 

-123 


. 1317 

+102 


1005 

-43 


93 X 

+ 3.7 

Deutsche Mark 

147.6 

+ 2 L 9 


175.9 

+243 

ReJMre# . ... 

135 .R 

+143 

French Franc 

718 

—129 

Ut 

473 

-183 

v« 

224.9 

+ 67 X 


Morgan GuaratCy changes: average 1980 - 
Beak tri England tedn IS** wnp 

1975-100). 

OTHER CURRENCIES 


May 21 

li 

7 Dq< 
notk* 


Three 

Months 

Sis 

Months 

One 

Yew 


7 V 8 

TVfik 

th&s 


au-au 

9 «e- 9 S 

UX. Dollar 

*>V 6 V 

6 V 7 

7 V 74 . 

TVTt 

7 V 7 \ 

BA-fli 

Can. DuHir ___ 

7 V 7 S 

7 V 71 * 

7 V 8 


BH- 9 ,*, 

9 A* 9 fl 

0 . Gunner ____ 

4 V 5 

*V 5 

5 - 5 i| 

5 - 5 ), 

5 i- 5 d 

3 i- 5 d 

5 w. Franc 

VI 

V**h 

3 &-SA 

3 H -311 

3 H- 3 I 1 

3 V 4 

Oeoodimaric _ 

3 I 1 - 3 B 

3 U 4 B 

SrM. 

3 VM. 

3 V 3 k 

3 V 3 7 , 



711-84 

8 ^-U 

8 i- 8 i 

BV 8 *z 

8 V 8 J. 

Infer Urt 

941 

9 VlD«e 

9 VIW. 

10 -lOij 

lOVldj: 

10 V 11 I, 

B. Fr. (FtnJ 

6 fl- 7 Jk 

6 «- 7 i 

6 H- 7 A 

7 i -74 

7 V 7 J, 

7 i- 7 A 

B»Fr. (CreiJ — 

Writ 

6 V 7 

6 V 7 

7 - 71 * 

7h-7h 

7h-7H 

Yfe — ■ 

3 * 4 - 3 % 


an -4 

3 V 33 

3 Q- 3 ^ 

3 V 3 « 

D. Krone 

9 VUPj 

9 VMH. 

9 V 10 k 

9 * 2-10 

9 V 1 W, 

IOVIWi 

Asian SSIng 

44 >* 

WA 


4 V 4 V 

4 V«. 

4 V«s 


Mw 21 




■UUO’H 

Xynw.U 01 .aoj 

6459C664603D) 

■ fitawa.'M I 

lia.6IK2096.affl 

|K»9(K2.9030j 

*8910X30*5 

35375-35480 

3342O-3J570 

U-iyjO-S^JOO 
W S5.75-5430 
|6Jfa9S-6-1755 


19920-15980 

158504-3860 

315660 - 31.7230 

*5305-0325 

15155-153.75 

7202572035 

6955- 

820.70-83750 

0J73754JJTS85 

56X036.90 

2.469M-4T10 

1236 , 00 - 1 2 < 8.0 0 

17250-17270 

37*95-3.7505 

2 . 1125-201350 

1.9920-1.9960 

3.0535-51495 
Ji 00-52.10 
3X7ZS-3X735 


Loag-Mnu eurodollars: Two years 8 V 9 >i per cent,- d*ee years 9 V 9 % per cent; Four yean 9 V 
9 b Mr cent; five years WPi per cam nontinaL Swh b w rues are call for U 3 Doners and 
Japanese Yew others, ten days’ notice. 


EXCHANGE CROSS RATES 


MW 21 

f 

wm 

E 9 

m 

QQ| 


m 

ra 

E S 

BFr. 

£ 

8 

1 

0395 

1 X 80 

1 

2.985 

1777 

Z 36 X 

1403 

IT"! 

KI'l 

2.450 

1459 



2265 

1348 

61.90 

36 X 5 

DM 

YEN 

0335 

4337 

0363 

7317 

1 . 

12 X 5 

79 X 6 

1000 . 

3346 

4232 

0821 

1038 

1326 
1435 1 

7253 

9 n 4 . 

0.759 

9395 

20.74 

WJ 1 

F Fr. 
SFr. 

ip 

a«oe 

1 X 82 

0 X 86 

2.909 

1218 

2963 

9633 

10 . 

4 X 77 

2.453 

1 . 

3367 1 
1372 | 



6198 

S -27 

M FL 
Ura 

0397 

0.462 

0.499 

0-776 


7039 

109 X 


0729 

1332 

1 , 1 

1353 1 

643.9 

1000 . 

0673 

1 X 46 

18.41 

2839 

CS 

B Fr. 

0:442 

tV .16 

0.742 

2.713 

159 

1043 

3813 

iwi| 


1485 
5.432 | 

9561 

3498 . 

1 

3 X 58 

71 S3 

m 


•ScKfog «h» 


Yen pc r 1.000: Fiwch Fr per 10: Uq per WOO: Belgian Fr per MO. 


FINANCIAL FUTURES 


Gilts and bonds recover 


LONG-TERM gilt futures reco- 
vered on the London ' Inter- 
national Financial Futures 
Exchange yesterday, as the mar- 
ket regained its poise, after 
Wednesday's shocks and rumours. 

The Citibank loss and increased 
loan loss provision provided the 
shock, and the opinion polls, 
ahead of the UK general election 
provided the rumours. 

The Harris poll for TV-AM con- 
firmed market fears that a poll 
would show the Conservatives 
lead cut sharply to 3 percentage 


UFFE LOME SILT FUTURES OPTIONS 


points, but traders gained some 
consolation from two other polls, 
in the morning press, still showing 
a strong lead for the Tories. 

June long-term gilts opened fir- 
mer at 126-01, and touched a low of 
125-18. The contractrose to a peak 
of 120-08 and closed at 128-03. com- 
pared with 125-26 previously. 

US Treasury bond futures were 
firmer, as dealers reconsidered 
the Citibank move, and decided 
the bank's action on debt was 
likely to be more constructive 
than at first feared. 

UFFE US TREASURY BONO FUTURES OPTIONS 


Bonds fbr June delivery opened 
at 8800. and fell to a Ion of 87-29. 
The highest level touched was 88- 
24, and the contract closed at 88- 
09. against 87-22 on Wednesday. 

The surprise move of the US 
Federal Reserve to drain liquid- 
ity from the New York banking 
system on Wednesday, through 
matched sales, was 'seen as a 
possible indication this week’s 
Federal Open Market Committee 
meeting decided to tighten its 
monetary stance, following recent 
signs of inflationary pressure, and 
to defend the dollar. 


Strike 

■ Cafe-Last 

Puts— Last 

Strike 

-CaBs-Laa 

Ptfe— Last 

Strike 

Cafe -Last 

Pais- Lost 

Price 

June 

S«* 

June 

Sept 

Price 

Sri* 

Dec 

Sept 

Dec 

Price 

May 

Jure 

May 

Jose 

120 

6X6 

7X0 

0X0 

1X0 

80 

8X2 

7X3 

046 

139 

19750 

20-70 

71 n 

0X0 

0.41 

122 

4X6 

535 

0X0 

135 

82 

631 

6.40 

131 

236 

20000 

1820 

1882 

0X0 

0.62 

124 

2X6 

433 

0X0 

233 

84 

5X6 

527 

130 

3X3 

20250 

15.70 

16X2 

0.00 

092 

126 

0X6 

3X0 

0X0 

3X0 

86 

338 

«23 

238 

3X3 

20500 

1320 

1432 

0X0 

132 

128 

oxo 

236 

158 

436 

88 

2.46 

329 

326 

5X5 

20750 

10.70 

1234 

0X0 

184 

130 

oxo 

134 

338 

534 

90 

131 

2X5 

431 

621 

21000 

820 

10.70 

0X0 

230 

132 

n^n 

1X5 

538 

7X5 

92 

133 

2X5 

5X7 

7X3 

21250 

5.70 

648 

0X0 

228 

134 

0X0 

0.44 

738 

8.44 

94 

030 

136 

730 

932 

21500 

320 

6.92 

0X0 

3-72 


Estimted vohme total, Cafe 2,932 Pot* 15*1 
Previous Oafs open ioc Cafe 29,324 Pali 16,967 


Estimated volume total, Colls 0 Pm 1 

Previous fey's open 1st: Cafe 166 Pus 266 


Estimated volume total. Cans 13 Puts 31 
Previns fey's open ink Calls 290 Pms 423 


UFFE OS OPTIONS 
£25500 (cast* per £1) 


LONDON SE OS 
El 2,500 (cents p 


OPTIONS 

tea) 


Strike 


Cafe— Last 


Price 

Jim. 

Mo 

Aug. 

SepL 

Xai. 

L45 

22-95 



2295 

0X0 

130 

17.95 

17.95 

— 

17.95 

0X0 

135 

1295 

1295 

3295 

1295 

0X0 

1X0 

7.95 

7.95 

827 

839 

0X6 

1X5 

3X8 

385 

435 

535 

0X8 

1.70 

0.73 

132 

238 

272 

293 

L75 

0X6 

029 

084 

124 

726 


Estimated volume total. Cafe 21 Pets 20 
Previous days open kK. Cafe 1,089 Puts 1,782 


Pn&— Last 

Jtfe Aug Seta. 

— — o_nz 

QUO uo 

022 038 638 

tm cm ut 

U& 200 270 

U3 to S27 

7iO 8-29 0.79 


Strike 

Price Jane 
L45 12.90 
130 1540 
v w \9 in 
140 850 

L65 330 

1.70 1X0 

L75 025 

P revie w dor's op 
Vtitane: 30 


Cafe— Last 
■My Aug. 

1340 — 

ya in __ 
830 8ii0 
425 4.90 
L70 2Ab 
065 UO 
m tec Cafe 290 


SepL June 
1270 080 
15.40 025 

1230 020 
090 020 

&40 065 
3-05 2.90 
L55 730 
Puts 37b 


Pnts— Last 
July Aug. SepL 
- - 130 

025 — 050 

030 — 085 

OA5 090 135 

135 220 290 

355 *30 555 

725 820 875 


PHILADELPHIA SE OS OPTIONS 

£225*0 (cents per LI] 


UFFE— EOROOSLUUt OPTIONS 

Sin potat* of 100% 


Strike 

Price 

Joe 

Cafe-Last 
July Aug. 

SepL 

Jane 

PMS-La* 

Mr Aug. 

SepL 

Strike 

Price 


Cafe— Last 

Seta- Dec. Mar. 


Pots— Lost 
Sen. Dec. 

1X00 

7X0 

7.70 

— 

640 

— 

035 

— 

1.15 

9130 

0.92 

034 

651 — 

0X0 

632 

0X9 

1X25 

520 

5.70 

630 

6X0 

035 

0X0 

130 

180 

91.75 

0X8 

638 

640 — 

0X1 

0.41 

nm 

1X50 

3X0 

380 

430 

530 

650 

L40 

205 

2X0 

92X0 

646 

nss 

030 — 

0X4 

034 

0.98 

1X75 

1X5 

240 

330 

— 

130 

225 

330 

530 

OTJWS 

023 

617 

022 — 

606 

670 

135 

1200 

0.75 

130 

210 

530 

270 

3X5 

430 

6.70 

9250 

0X8 

030 

036 — 

036 

688 

134 

1725 

025 

0.75 

L40 

270 

4X0 

5.40 

620 

8.41 

9275 

602 

0X6 

033 ~ 

635 

1X9 

1.94 

1.750 

0X5 

640 

690 

L90 

7X0 

730 

770 

1030 

93X0 

601 

0X3 

0X7 — 

039 

131 

1-75 

1 11 iii iii li ■[|ii iii 1 1 y ^ 1 j a\' [I tcj." ' 

CHICAGO 


Previous day's epta Int: Calls 1382 Pots 1256 
Estimated vobmc, Cdfe 75, Puts 99 


20-YEAR 12% NOTIONAL SILT 

E59JMM 32ndi of 100% 


1LS- TREASURY BONDS (CRT) 8% 

SUKMBO 3U> «f 100% 


JAPANESE YEN OHM] 

Y125oi S per Y1B0 


Close High Low Pm 
Jure 12X03 12608 125-18 12526 

Sam. 126X0 12604 125-22 12523 

Dec. 125-21 — — 125-12 

Estimated volume 23,488 (393401 

Previous day's open Ipl 32X61 01X83) 

Jdu 

SepL 

Dec. 

Mar. 

1 »t«M 

88-19 

87-10 

86-21 

8526 

85-02 

F3| 

Low 

87-26 

86-25 

8602 

85-23 

8S-02 

Prev. 

87-28 

8627 

85-30 

8504 

84-12 

Jcne 

SepL 

Dec. 

Mar. 

Jane 

Latest 

67132 

67200 

0.7277 


|| 

LO 

ii 

is 




SepL 

Dec. 

83-5 

B3-30 

83-Z7 

83-Z2 

82-02 




10% NOTIONAL SHORT GILT 
£100X00 b4Un of 100% 


Jure 

Sent 

- 


- 

81-15 

Jure 

Latest 

03633 

mzm 

EESi 

Low 

05627 

Prev. 

03662 

Dose High 
Jane — — ■ 

Lew 

Prev. 

Dec. 

— 


— 

81-01 

Sete- 

Dec. 

03690 

65751 

03696 

03760 

03685 

05751 

05712 

65774 

f- '■ • - : 



Etvtt 

"BO 

mnTj 









Sin peinti at 100% 


TmtEE-MONTH EURODOLLAR (IMM) 


THREE-MONTH STERLING 

£5005*0 points of 100% 


Close 

9L2B 

Low 

Prev. 

9125 

9136 

9123 

9132 

9128 

91X8 

9123 

9087 

9640 

9035 

91X1 

9668 

90 JO 

90X5 

9682 

90.48 

9050 

9645 

90X1 

9030 

9032 

9028 

90X4 


Jane 
Sept 
Dec. 

Mar. 

June 

SepL 

Estimated Volume 6,776 (5,660) 
Previous fey's open int 25483 (25505) 


Jane 

SepL 

Dec. 

Mar. 

Jon. 

SepL 

Dec. 

Mar. 


Latest 

9430 

9339 

92.70 

92.43 

4221 

9204 

91.91 

9133 










9403 

94X9 

94X1 


Latest 

High 

Low 

Prev. 

9320 

9334 

93X9 

Jre 

92.40 

92.42 

9238 

9233 

9272 

92X4 

9238 

SepL 

902 

9173 

91X8 

91X1 

92X3 

9235 

9230 

Dec 

9131 

9133 

9125 

9137 

9221 

9235 

9230 

Mar. 

91X7 

91X8 

90.97 

9690 



9L94 

Jane 

9688 

9089 

9083 

9672 

91.91 

9127 

91.79 

Set*. 

90.73 

9674 

90X7 

9037 

91.73 


91X5 

Dec 

9038 

9039 

9032 

9643 


Mar. 

90.45 

90.46 

9037 

9030 


SWISS FRANC (HIM) 

SFr 125500 S per SFr 


STANDARD A POORS 500 INDEX 

1500 Hates hide* 


FT-SC 100 INDEX 
£25 per tuS index potat 


Latest Hlfe Low Piw. 
June 06065 06879 06857 06899 

Sep, 06926 03941 06919 06957 

Dec. * 06992 07004 06992 07030 

Mar. 07060 — 07060 07090 


Latest High Lav Prev. 
June. 281.90 28320 28120 279.90 

SepL 28355 jot 74 pot an pot in 

Dec. 286.40 287.40 28630 28425 

Mar. 28040 289.40 — 28625 


INTERNATIONAL 

TAXATION 


The Financial Times proposes to publish a 
Survey on International Taxation on 
June 12 1987 

Among the subjects reviewed will be: 

INCOME TAX REFORM 

THE RISE OF VALUE ADDED TAX 

THE GROWTH OF INTERNATIONAL 
TAX CONSULTANCIES 

For more information about advertising 
in this Survey and a copy of the synopsis, 
contact: 

Claire Broughton 
on 01-248 8000 extension 3234 

The content, size and publication dates of 
Surveys in the Financial Times are subject to 
change at the discretion of the Editor 


0 


THE EXPORT-IMPORT 
BANK OF KOREA 

U.S.$50,000,000 
Floating Rate Notes due 1994 

In accordance with the provisions of the Notes 
notice is hereby given that for the six month Interest Period 
from 21st May, 1987 to 23rd November. 1987 
the Notes will carry an Interest Rate of 8.0625% per annum. 
The Coupon amount payable on Notes of 
U.S.S 1*0.000 will be $4 16.56. 

U.S.S100.000 will be $4165.63. 

AimBiri 


£5* FIRST CHICAGO 

re9r lmted 


□qw High Low Prev. 
Jure 21820 221X0 217.00 22030 

Sept. 2ZL7D. 22230 Z2L3D 22330 

Estimated volume 1604 (1776) 

Premoos fey's open fed. 5,359 (11 85 ) 


THREE-MOUTH EURODOLLAR 

Sim petals of 100% 



Dew 

Hish 

Lew 

Pr». 

June 

9242 

92«4 

9235 

9234 

SepL 

91.72 

9173 

91X4 

91X2 

Dec 

9132 

9132 

9122 

9117 

March 

91X7 

91X8 

9693 

9089 

Jure 

9088 

9082 

9671 

90X9 

SepL 

9673 


— 

9034 

Dec 

9038 

_ 

— 

9039 

Mar. 

9643 

— 

— 

9024 


Estimated vpiuma 8,768 02318) 
Previous fey's open Ira. 30,795 00,990 


ILS. TREASURY BONDS 8% 
SKXLOOO 32ads at 100% 


Ctase HlgP Law 
Jane 8809 — — 

Sat 87-10 — — 

Mar. 86-12 — — 

Estimated Vutomr 5,856 0X317} 
Pterions ton's open ta. 5,086 C5394) 

CURRENCY FUTURES 


Ptev. 

87-22 

86-24 

85-25 


POOND— S (FDREIEN EXCHANGE) 


Spat 

16795 


l-ratn. 3-nah. 6td)L 
16776 L6747 16717 


12-mtiL 

16699 


IKK — STERLING Ss per £ 


Latest Htft Low Pm 
JbM 16775 16800 16755 16815 

Sept 16725 16765 16710 1X7B5 

Dec 16705 16750 16750 16760 

Mar. 16700 16770 16700 16760 


UFFE— STERLING 05,000 $ per £ 


Ctsse HM> Low Prev 
Jone 16780 ] i-am 16768 I 6W5 

SepL 16745 16753 16745 16825 

Dec. 16720 — — 16800 

Estimated volume 46 022) 

Pterions fey's open int 590 (468) 


MONEV MARKETS 


FT LONDON INTERBANK FIXING 


Rates firm on poll 


m 0 0 un. Mgy 2U 3 months (J-S- defers 


bU Hi 


a flerrg 


6 months U3. dollars 


W7H 


otter 71) 


SUGHT1Y HIGHER Interest 
rates wera the result of one of 
yesterday's opinion polls, 
tlngthe labour Party had reduced 
the Conservative lead to only 
thr«« points. 

Three-month sterling interbMk 
rose to 813-fili per cent from »*•- 
Mk per .cent, lo reaction to the 
news, hut any market nervousness 
about the outcome of next tnomna 
general exaction was tempered by 
sterling's steady .performance, 
and do sign yet of concern, by 
overseas holders of the pound- 

Dealer* also took note of events 

to the US. and the surprised™^ 
iwg pr funds from "the New York 

UK clearing bank baao 

tending race 9 per cent 

Bam May S 

wrini aystcun hy the Fe deral 
Reserve on Wednesday. 
ting this week’s meeting of tee 
Federal Open Market Committee 
might have agreed on tighter cre- 

di ln*New\rerfc yesterday the F«d 
added reserves as expected by 
way of five-day system repurchase 
agreements. Federal funds were 
trading tHO per cent when the cen- 
tral bank intervened, to add 
temporary reserves, compared - 
with. an average of fi.6 per cent on 

W T?J e Sni of England Initially 
forecast a London money market 
shortage ©f £150m. but revised te» 
to £14Um at noon. 


Help of £145m was provided. 
The authorities did not operate in 
the market before lunch, but in 
the afternoon bought £X45m bank 
bills in band 1 at tP* per cent 

Bills maturing In official hands, 
repayment of late assistance and a 
take-up of Treasury bills drained 
£ 2 18 m. with a rise in tee note 
circulation absorbing £55m ana 
bank balance* 

another £55 m. These outweighed 
. Exchequer transactions adding 
£ 280 m to liquidity- 

- In Faria the Bank of France left 
its money market intervention 
rate at per cent, when injec- 
ting funds into the money market 
against first category paper. The 
intervention rate was last 
changed on March 9, when it was 
-cut from 8 per cent. 

In Amsterdam call money was 
steady at 5 i per .**“ 

Dutch Central Bank drained 
liquidity from the money market 

The authorities allocated Hands 
at an unchanged 53 per cent, 
when accepting bids of DFI 2.4bn 
at a tender fbr eight-day special 
advances. This only partly 
replaced the DF13.7bn draining 
from the market as an earlier six- 
day facility expired. 

Subscriptions were meet In full, 
and the amount of money supplied 
was thought to be sufficcnt, when 
added to a new three-month credit 
quola. to cover the current money 

markri credit shortage of between - 

DFI T.Sbn and DFI 8b U. 


The {bring rates are tit* arithmetic means, roonderi to foe nearest one-riw*««h, of the bid and 
ottered raws for SI Dm owned by foe moricet to Are reference bonks at I1D0 ml cadi working fey- 
The Dank* ore National Westminster Bank, Bat* of Tokyo, Deotsdie Hank Nauonoltr M 

Paris and Morgan Guarany Trust. 

MONEY RATES 


NEW YORK 

(Lunchtime) 


Daenoeli . 
Tentnoat). 
8ti TVer montit 
8 Simonb - 

6> merer — 

FedtafcaiWerveMtan _ Mi Twojtnr _ 


Broker baa me 
Fed. 


NfA 

Tbeeyew 

831 

WA 

Four year — — — 

BAS 




7X9 

8X4 

10 yew 

885 

9X0 


Moya 

Overnight 

One 

Month 

Two 

Months 

Three 

Months 

St* 

Months 

Lombard 






3X5-380 

SJ> 


,7 ta 





5-M 

3.7^S1» 


3V3V 








296875 


3XSb25 




9V10% 

lovu^ 

6V7 

UVU>2 




_ 



7-7h 


__ 

Dublin 

UV13L 

11-11V 

11-11^ 

10V11 

— 


LONDON MONEY RATES 


Ma»a 


Local. AatMritr DeoMHsJ 
LaaCAllthOrib 
Dhctrant rnwt Deootitsj 
CawnePtw ItL- — — 
Fhooca Hocae Detnlts — 
Treamri'BifhtBorl — — 
Bank Bite (Bofl 


Fine Trade ■ Boy) . 
Donor cot. 


SDR Linked Semite. 
ECU Ltatad Oemsto . 


Owe- 

Wflte 

7 dm* 
notice 

Month 

Three 

Mouths 

SU 

Months 

One 

Year 

BW 

8>. 

8V-A 

B-5 

B£j8 

av. 

SL 

Wr*L 

BHi 

IW1 

a 

SA 

8*i 

8.1 

SU 

9d 

725-729 

6A-sa 

bA-fa:, 

8U-8U 

Bii-JA 

a\ 

su 

8J1 

8U 

a,*. 

SA 

9,1 

T. 45- 7.40 

6A-6A 

66-6*1 

BU 

SV 

8U 

oTs 

9A 

780-7.75 
6,1 -6 A 
0V-bU 

9 A “9 
812-811 

9A 

9*t 

V* 

838.45 

6U-6>z 

7U-7 


Treasury BUS heft); one-month 8** bw Lenc itoree-tnootiti 8A per cent Bonk EiBt fottll: one- 
modi 8|i per one three nwous 811 oer too: T/eatwy Mn, A‘vrage 
8.2568 p.c. ECGD Fi*ed Rate Sterling Ctpon rmante, Make ep cay Apni 30. lwr. Agreedrate^ 
for Dtriod 26 to JwW 23, 1987, Sebenv- 1: 13-29 Sefwnes 1 1 A III: 1-3- p.c. Reference 
MteSerfod Aw“l ^ a 55 30. 1^7. Seteme IV: 9«43 Loco ifemmto 

Effvcn dtvc # mice, othm Oiyf Iucml Fetanc* Kouiei Bay# Rxe 10 P» r from ^ 
1987: fSSiDfpout Rate* lorsumsatt*wada»ViwMee3-3:jpercem. C enH cores o4Ta«feooVt 
(Series M; Degosk OOftOOD and over heU o«der o» oonma p« cm:; 
eenu three-ste mwnte BH »t«-«ne tnonutt 8»i per urx. mae-12 tnrtm Y oe» cent; iwer 

f inpry y ] g peeeem (mm May 22, Deposits wfthsnnen far cash 5 per ten- 


$ 


WORLD VALUE OF THE DOLLAR 

BANK OF AMERICA GLOBAL TRADING ECONOMICS DEPT.. LONDON 


m 


The table below gives tbe rates of exchange for the U.S. dollar against various cnrreocies as of Wednesday, May 20, 1987. The exchange rates listed are 
middle rates between buying and selling rates as quoted between banks, unless otherwise Indicated. All currencies are quoted in foreign currency units per 
one U.S. dollar except in certain specified areas. All rates quoted are indicative. They are not based on, and are not intended to be used as a basis far, 
particular transactions. 

Bank of America NT & SA does not undertake to trade In all listed foreign currencies, and neither Bank of America NT & SA nor the Financial Tunes 
assume res po nsi b i lity for errors. 

Bank of America Global Trading, London, EC(J=$US1.17254 SDR1=$USL31217 

New York, Tokyo, San Francisco, Los Angeles, Toronto. As of May 20, at 11.00 ajn. 

3 months 6 months 
Eurodollar Libor: 7, 1 } 8 

Sibor: 7*4 81V 


24-hours a day trading capability. 
Enquiries: 01-834 4360/5. Dealing: 01-236 9861. 


COUNTRY 


CURRENCY 


Afghanistan . 


Algeria. 
Andorra , 


Antigua , 


Argentina. 
Aruba 


Australia . 
Austria _ 


Bahamas . 
Bahrain _ 


Balearic Islands . 
Bangladesh 

Befgtun 

Belize - 


Bermuda . 
Bhutan _ 


Bolivia _ 
Botswana . 

Brazil 

Brunei. 


Bulgaria 

Burkina Faso. 

Burma 

Burundi 


Cameroon Rp. 
Canada. 


Camay (Nandi ___ 
Cape Verde Islands . 

Caymu Wands 

Central Africa Rep. 

Chad 

CMe 

China 


Colombi a. 


Congo People’s Rep. of . 
Co su Rice , ...... . 

Cou d'Ivoire — — 

cu» 


Cyprus 

Czechoslovakia . 


DJrixMiU Rep. of : 
Oocilnka 


Dominican Republic . 


Ecnptor . 


Egypt — . 

El Salvador 

Equatorial Coinea . 
Ethiopia — .... 


Faeroe Ittaaris _ 
Falkland Islands . 

nil 

Finland - 

France 


French C*ty In Africa — 

French Guiana 

French Pacific Islands. . 

Gabon 

Gambia — ~ 

Germany (East! 

Germany (Westi > — _ 
Ghana 


Afghani fo) 

50X0 

Lefc 

5.9827 

Dinar 

4X3 

/French Franc 

5.923 

(Span hit Peseta 

124X0 

Kwanza 

29.918 

E. Caribbean S 

2.70 

Austral 

1395 

Florin 

179 

Dollar 

13803 

Schilling 


Portuguese Escudo 


Dollar 

100 

Dinar 

D3769 

Spaatsh Peseta 

124X0 

Taka 

30.90 

Dollar 

2X113 

/Franc lc> 

36X8 

(FrancU) 

3687 

Dollar 

2X0 

6FJL Franc 

29605 

Dollar 

1.00 

Mfluhnim 

1239 

/Boliviano (0) 

2X1 

(Beflvlaao tf) 

2X17 

Puta 

1X507 

Cruzado fo)(2) 

31358 

Dollar 

2315 

Lev 

08715 

C.FJL Franc 

29635 

Ky« 

63489 

Franc 

122X98 

CJJL Franc 

29635 

Dollar 

13465 

Spanish Peseta 

124X0 

Esoalo. 

72.405 

Dollar 

OJS35 

C.F-A. Franc 

29635 

6FJL Franc 

29635 

Peso (0) 

21532 

Renminbi Yuan 

3.722 

Peso fo) 

23784 

C-FJL Franc 

29635 

CJ^JL Franc 

29635 

Colon 

6133 

CJFJL Franc 

29635 

Peso 

0.7733 

Pound* 

23088 

Koruna fo) 

535 

Krona 

6X57 

Franc 

177X0 

E. Caribbean S 

2.70 

/Paso 

3.47 

(Peso Id) 

3.45 

/Sucre (d) 

17850 

(Sucre If) 

15430 

/ Pound (0) (5) 

670 

(Pound Id) ts> 

23777 

/Colon «D 

5.00 

ICofon 1(0 

5X0 

C.FJL Franc 

29635 

Birr to) 

2X631 

Danish Krone 

6X57 

Pound- 

1X882 

Dollar 

1X624 

Markka 

4313 

Franc 

5.923 

C.F.A. Franc 

29635 

Franc 

5.923 

C.F.P. Franc 

107X91 

C.FJL Franc 

296.1S 

Dalasi 

738 

Ostmoric lot 

1.7698 

Deutsche Mark 

17698 

Cedi 

159X0 

Cm) Market rate 

■U.S. dollar 


VALUE OF 
DOLLAR 


COUNTRY 


CURRENCY 


Gbraltar ........... 

Greece 

Greenland 

Grenada — 

Guadeloupe 

Guam . 

Guatemala 

Guinea Bissau _ 
Guinea Republic , 
Guyana 


Ham , 


Honduras RepobRc 

Hong Kong . .. 

Hungary 


Pound* 
Drachma 
Danish Krone 
E. Caribbean S 
Franc 
US. s 
/Quetzal (o) 
(Quetzal lb, D 
Peso (31 
/Franc 
(Franc (0 
/Dollar 
(Dollar (a) 
Gourde 
Leirgtira to) 
Dollar 
Forint 



Macao . 

Madagascar Dm. Rp. 

Madeira 

Malawi 


Malaysia 
Maidive Islands . 
Moll Republic _ 

Malta 

Martinique 

Mauritania 

Mauritius , 


Miquelon. 


Mongolia 

Montserrat . 
Morocco - 
Mozambique _ 

Namibia 

Nauru Islands. 
Nepal — 


NetherLi into Antilles . 
New ZvzIvkJ 


Nicaragua 

Niger Republic , 
Nigeria - — 


Oman Sultanate of — 

Pakistan 

Panama 


Pataca 

Franc 

Portuguese Esoalo 

Kwacha 

Ringgit 

Rufiyaa 

C.FJL Franc 

Ura* 

Franc 
Ouguiya 
Ru p e e 
/ Peso (d) 

(Peso fe) 

French Franc 
French Franc 
Tugrik fo> 

E- Caribbean S 

Dirham 

Metical 

S. A. feud 

Australian Dollar 

Rupee 

Guilder 

Guilder 

Dollar 

{ Cordoba 
Cordoba (0) 
Cordoba (d) 

C.F.A. Franc 
/Naira Id) 

I Naira (o) 

Krone 

Rial 

Ruoee 

Balboa 


VALUE OF 
DOLLAR 


1-6882 

13233 

<v657 
2.70 
5.923 
LOO 
LOO 
266 
650-00 
340X10 
300.00 
lo xn 
20 XX) 

5 -DO 

ZOO 

7304 

47X11 

38.40 

12J59 

164200 

703417 

03109 

1313 

1384 

1283-60 

5.49 

13930 

0332 

tea. 

153097 

13803 

0.94 

825.30 

0370b 

35X0 

122X5 

1.9853 

1X0 

0-2926 

1.4508 

36X8 

8X361 
667.463 
137X5 
2206 
2.47 
10 JX 
296-15 
29542 
5.923 
74.80 
12301 
1240X0 
1237X0 
5.923 
5.923 
33555 
27D 
8X3 
202X0 
L9853 
13803 
21X0 
1.994 
1.79 
1.7227 
900 00 
70X0 
1700X0 
296.15 
411403 
3-5088 
fa-582 
0.385 
17308 
1X0 


COUNTRY 


CURRENCY 


Papua New Guinea . 


Paraguay . 


nhlflnrJirei 



Pttcaim islands » 
Poland . 

Portugal 

Puerto Rfco — - , 

Qatar 

Reunion Isle de la. 

Romania 

Rwanda 


Sl Chrteopber . 
SL Helena 
Sl Lucia 


SL Pierre. 
Sl Vincent . 


Samoa 1 Western) 

Samoa (Am) — — — 

San Marino 

SftdTomtA Prirreip DR 
Saudi Arabia _______ 


Senegal _ 
Seychelles _ 
Sierra Leone 


Singapore 
Solomon I stands . 
Somali Republic . 
Sooth Afrits — _ 
Spain 


Spanish ports In 
North Alrlca — 
Sri Lanka . 


Sudan Republic . 


Swaziland _ 
Sweden __ 
Switzerland. 


Tanzania , 


Togo Republic , 
Tonga Islands. 


Trinidad & Tobago 
Tunisia 


Turkey 

Turks & Caicos Islands _ 
Tuvalu ___________ 

Uganda — 

United Arab Emirates _ 
United Kingdom 

Uruguay _________ 

USSR 

Vanuatu _______ — 

Vatican 


Virgin islands f Bniisiti _ 

Virgin Islands (US! 

Yemen 

Yemen PDR 

Yugoslavia — 

Zaire Republic 

Zambia 

Zimbabwe 


Kina 

/Guarani to) 
t Guarani <p) 
(Guarani (d! 

{ Inti (o) In) 

Inti (O 

inti cn 

NZ Dollar 
Zloty fo) 

Escudo 
u.S. S 

Wyal 

French Franc 
/Leu lol 
(Leo (cl 
Franc 

E. Caribbean S 
Pound” 

E. Caribbean 5 
French Franc 
E. Caribbean S 
Tata 
US S 

Italian Ure 

Dobra 

Riyal 

CJFJL Franc 

Rupee 

Leone 

Dollar 

Dollar 

- Shilling Id) 

/Rand (f) 

(Rand le> 

Peseta 

Spanish Peseta 
Rupee 

{ Pound lo) 

Pound (U 
Pound ID 

Guiltier 

Lilangeni 
Kipao 
Franc 
Pound (ol 

Dollar fo) 

Shilling 

Baht 

C.FJL Franc 

Pa'anga 

Dollar 

Dinar 

Ura 

US s 

Australian Dollar 
New Shilling (lUfal 
Dirtiam 

Pound Sterling” 

Peso (ml 

Rouble 

Vatu 

Lira 

{ Bolivar (o) 

Bolivar Cn) 

Bolivar (d> 

Dong (oi 

US S 

US S 

Rial 

Omar 

Omar 

Zaire 

Kwacha (4) 

Dollar 


VALUE OF 
DOLLAR 


0X873 

240X0 

550X0 

785X0 

1535 

24X5 

19.45 

20.48 

1.7227 

248.70 

137X5 

1X0 

3X41 

5923 

4X8 

10.08 

78X751 

2.70 

1.6882 

2.70 

5.923 

2.70 

2.118 

1X0 

1283X0 

34.485 

3.751 

296-15 

53134 

45X0 

2- 115 
L9704 

120X0 

33746 

1.9853 

124X0 

124X0 

28.977 

2.45 

2.93 

4X0 

1.7B5 

1.9853 

6X07 

1.4508 

3.925 

32.13 

b023 

25-58 

296.15 

13013 

3- bO 
0X1 

80731 
LOO 
13803 
60X0 
3X73 
L6882 
21430 
0X29 
108218 
1283.60 
1430 
730 
29.00 
80X0 
1X0 
1X0 
9.50 
0 343 
594X4 
110 424 
7.9809 
1X236 


_ national Currency unlL la) Parallel Rate. fo) OfGciji rale. fo) Floating Rare le) Commercial rate. 

fo) FVeenarket- fo) Controlled, tn Financial rate. <g) Preferential rates. Ih> Non essential Imports. <» Ftoatmg tourrti rate. <■> Publrc Tramaci>on Rate (k> Agricultural 
products. <» Priority Rate. <nl essential imports, (pj E, ports. ID Kenya. 28 Apr. B7: Slxilhiq devalued against the SDR by appraa. OX*». 121 Srazti. 30 Apr 87; Cruzado 

devalued by appro*. 6.979*. 13) Giunea BKsau, 4 May 87: Peso devalued by approx. 41%. (4) Zanftia, 5 May 87; Kwacha pegged to fee Dollar. IS) EgypL 12 May 87: Partial notation 
of fee Pound announced. (6) Uganda, IB May 87: New Sinning Introduced, equal to 100 Old Shillings. 

For funner information please contact your local brant* of the Bate of America. 












































































































42 


WORLD MARKETS 


FT-ACTUARIES WORLD INDICES 


Jointly compiled by the Financial Times, Goldman, Sachs & Co., and Wood Mackenzie & Co. 
Ltd., in conjunction with the Institute of Actuaries and the Faculty of Actuaries 


NATIONAL AND 
REGIONAL MARKETS 


THURSDAY MAY 21 1987 


Figures in parentheses 
show number of stoda 
per grouping 

US 

Dollar 

Index 

1 Day's 
Change 
% 

PcwaJ 

Sterling 

Inde* 

Local 

Currency 

index 

Grass 

Civ. 

YieW 

US 

Dollar 

Index 

Pound 

Sterling 

Index 

Local 

Currency 

Index 

1987 

High 

1987 

Low 

Year 

. 896 
worn) 



139.98 

-0.7 

12357 

123.99 

333 

140.95 

12423 

12956 

140.95 

99.92 

3758 

85.73 

78.74 



88.65 

-12 

7825 

8132 

230 

89.71 

7901 

8249 

10152 

12352 

8855 

9629 

Belgium (47).. . 


115.47 

-LI 

10281 

10627 

4.49 

117.76 

103.70 

10751 

Ca™*, n Til 

1 125.10 

-0.9 

11061 

197 

Z.49 

126.43 

11254 

12327 

13&J.7 





117^3 

-02 

10353 

106.71 

259 

117.49 

103.47 

10657 

124JO 

4828 

97.95 

F«n™n»> 


11218 

-12 

99.03 

10455 

257 

11357 

10002 

105.73 

12132 

9859 

84.00 

6756 

8204 

West Germany «D1 


9L49 

+00 

30.76 

84.52 

220 

91.47 

8055 

8459 

10953 

Hang Kong t451 


108£0 

-02 

96.05 

109.00 

333 

109.07 

9605 

10927 

114.71 

9639 

71.72 

Irafand 1141 


129D1 

-02 

11328 

120.70 

351 

12922 

11330 

22D56 

13L86 

9950 

8554 

Italy 1761 

. 1 10158 

+02 

8958 

9730 

159 

10152 

89.41 

9759 

1T2-11 

9456 

7 % 

Japan (4581 


150A1 

+05 

132.95 

133.71 

0.49 

14939 

13200 

13246 

TA1 7SK 

IOOOO 

7299 

Malaysia (361... .... __ 


16OC0 

+02 

14654 

157.93 

2.40 

164.71 

14505 

15654 

16600 

9824 

6759 



173^1 

-1.Q 

153-43 

236-03 

093 

175.62 

154.66 

238.09 

19727 

99.72 

5051 

NethftHawKTRi 


118-21 

+0.4 

10435 

107.98 

421 

11756 

10353 

10759 

120.14 

9935 

87.73 



9110 

-12 

8050 

83.68 

324 

92.28 

83L27 

8450 

100.59 

8393 

64.95 

Norway (24) 

. 

13817 

-12 

121.97 

124.10 

234 

13936 

123.17 

125.05 

13936 

KXLOO 

9052 



137.99 

+12 

22152 

13437 

1.76 

136.46 

120.17 

13300 

137.99 

9929 

6055 



18L62 

+03 

16033 

12322 

329 

10103 

159.43 

124.63 

186.74 

IOOOO 

86.76 



11230 

-17 

9924 

105.92 

3.87 

11425 

10051 

20723 

12151 

100O0 

8153 

Sweden (¥».... 


11437 

+16 

100.96 

105.44 

229 

11262 

99.18 

103.70 

12458 

9035 

8604 



95.94 

+0.7 

8459 

86.78 

1-98 

9527 

83.90 

8538 

10406 

9326 

8053 

United Kingdom (338) - 


1443b 

-10 

12728 

127.88 

327 

14627 

12831 

12831 

14856 

9955 

9620 

USA (5%). 


114.71 

+02 

10126 

114.71 

326 

113.85 

10026 

11335 

12406 

IOOOO 

100.72 







119 1 4 

-02 

10527 

10825 

2.93 

119.83 

10552 

10851 

12151 

99.73 

90.44 


" 

1488b 

+0.4 

13123 

132.59 

0.65 

14804 

13057 

131.45 

15850 

IOOOO 

7357 



15659 

+02 

12034 

12234 

1.44 

136.79 

120.47 

iww 

14322 

100.00 

8020 



11527 

+0.7 

10176 

11524 

3.12 

11452 

10035 

11458 

12450 

100.00 

100.70 

World Fj US Q8241 

136.98 

+0.0 

120.92 

12928 

150 

136.92 

12058 

129.08 

14309 

10000 

8036 

World Ex. UK (20ft?) 

12665 

+0.4 

11130 

11924 

1.94 

12620 

11135 

123.47 

13353 

loabd 

87.94 

World Ex. So. Af. t7% SQ) 

127.93 

+03 

112.93 

119.99 

2.07 

12756 

11254 

119.36 

13335 

10000 

8855 


117^6 

+02 

10337 

11323 

3.04 

117.46 

103.44 

11295 

i9t m 

100.00 

9623 


The World Index (2420) 

12827 

+03 

11323 

120-04 

238 

127.90 

11264 

119.44 

13421 

100.00 

8854 



WEDNESDAY MAY 20 1987 


DOLLAR INDEX 





0 Times Friday May *2 *”7 


FOR 


AUTHORISED 
UNIT TRUSTS 


AlltoT UMt Trt. fdayn. M 
aOHaamtenteUmi mww 


MIF-MJ t_ 


ITKS 717373 


in* mm 

«fMnn.*rnW 1 %I 1*1 

taraPx-v; 

«n»b«ia 3M Ute 

Cannon -»« iff! «* 

Evnxitbv ml UK a 

tewuat Jos* »' «3 

Z&rrrzzrg? ® 

LT^olaMa _S»J wSl 
nw 

AEtrai IMt Tram LMUXkXc) 
40! Si Jet* a. Late* E»V «E 

H B3 


3P 


Bimm SMpfcqr ACoLM (iM) 

Efc=:fla 

Cii.ii .. St 

■Mfaiiiw J KJ 

gw— HI 

to mta>Cwrii*aSi»Z 
MvtaNMt „ 

Tvcto— ly ..." 

■rfcmt UMt TfcM DfcX*> 



tetotthM. 


ncSWfcExdwv, 

5 ekeF* 



n fcwtewi mun M 

MOWrtGro* efit 


rjbwmrtban 

(KIM— I ~ 

K—VMVa^. 
n. i imi. 

ntKhtefe 

OalMNM - . 
to—crCnf* 
D*IM(W u 





0U-1UMU Mte PKte* 

■ ■*' Aw— *** — * * * 

tS53t«s» 

1“ — 

- * 

• C,| 

S&-- " 


J AM 
OB LM Ck)(c> 
60^177 , Q1-SM2MI 


nMt> faMADMM SmNv U« 
Rw VWfc TtexriW TW ID* 


sajt 


u» 


MatUMiitorJS- 
tereitarW 
'Moinu— V teas. 

Umn ttafll 
>U> 





-*af m 

:2l SS.gESK-* 
-m ts SSSSSsur.-. 
lit aS5£>:ri 



<R-S7MM COL (fait Trad* WW 

3i = aeasffl^^ 

3*5 »» mutui — .. r.:: 8 a- 



Ha Grate 

reaasHw 

Mtwb— IK U»~**M 

W2E3 Ki 


US 

J5 Canada Ufr Unit TMt ARkbr. LM 
1« Z-Al'teh.PMvfBer.Ittre . 0X77. 

LBS C>Cn.0«L tUCO »l 

U( D.(« tarn "■ -31*5 24 

an (to me — r Drtt ,fl*J 20* 


too 


1 M Rahcti IWs A C* LM 

1 am ZSCAMWBM.L*— nKax70^ 

- d- a feMBedm 

“■ wmar 

fflwTl. 1BSQI- 


| J8 

'■dsssA’SUBSRfi. 

_.'8V “SM :W ~ 


- 9>17 . 
ifl JK Q4te417»9 

& is — - ,n- 




Z ■■ — — — tBilriii LU 
*£j H* 

uirnn 3ft 1 

its 


WMW 


JuafnJn 

rwuc^- 

C— NUFW 



oftt Thnt 


18 

12 



Cams Feud MsBSQtn LU 
1 OW Wv. WcnWcx, HW (MB 
0XWZB8K. _ 

F*[a 


*•? SLanteiWMIUfhCUMMft 

SlHI. A Cv*_ 


Omit Trssts KC («Xl> 
ton Dnr Cote, S— 5*C IEL 


Base values: Dee 3L 1986 - 100 

Condign, The FferaiaJ Time; Goldman. Sads & Co> Wood Mackccie & Ca LuL 1987 


EUROPEAN OPTIONS EXCHANGE 


BASE LENDING RATES 


Series 

An 

;87 

Nov 87 

Frt 38 

Siocii 

vm. 

Last 

Vol. 

Lan 

Vul. 

Lag 

GOLD C 

5*20 

43 

57 

2 

72 



*469.75 

GOLD C 

5460 

10 

32 

15 

46A 

13 

58 

** 

GOLD C 

5460 

114 

22.50 

as 

34A 

ID 

45 

“ 

GOLD C 

5500 

31 

1420 

11 

27 

3c0 

37 

" 

GOLD C 

5520 

316 

850 

420 

19 





N 

GOLD P 

5380 


—7 

25 

L50 






GOLD P 

53*0 

10 

1 







"■ 

GOLD P 

5*20 

60 

320 

— 

— 

— 

— 


GOLD P 

5440 

30 

b 

19 

13.90 





** 

GOLD P 

5460 

118 

12 

176 

1930 

13 

21 


GOLD P 

5480 

105 

24 

101 

23 




GOLD P 

S5C0 

60 

» 

— 

— 

— 

— 

" 



Jun 87 

Sen 87 

Dec 87 


SILVER C 

S7GQ 

7 

20 0 

33 

Z23A 

5 

230 

5890 

SILVER C 

5750 

18 

150 

7 

iao 

3 

200 

“ 

SILVER C 

5900 

10 

70 

a 

140 




SILVER C 

51000 

16 

31 

9 

91 

8 

120 


SILVER P 

S9S0 

15 

80 

— 

— 

— 




Jill 

87 

JL 

87 

Av 

tg 67 


son c 

FL200 


in? 

2.40 

2 

350B 

10 

4.40 

FI 200 55 

SIFI c 

FI 205 


24 

0.70 

530 

150 





S/FT C 

FI 210 




— 




155 

1 


S/FI P 

RJ95 


15 

0.70 

10 

Zfl 

20 

2.70 


S/FI P 

S/FI C 

FI 200 


91 

2504 

— 



1655 

550 

11 

FU90 




_ 

— 



IS 

1160 

99 

S/FI C 

FI 200 




- 

25 

5.90B 

29 

6 JO 

99 

S/FI C 

FI 205 


133 

3 

13 

420 



“ 




See 87 

Dec 87 

Mar 68 


S/Fl C 

FI 210 


25 

150 



30 

3.70 

FI 200 55 

5/FI C 

FL21S 



_ 

4 

2 

10 

250 

" 

S/Fl P 

FIA90 








20 

5.90 

“ 

son p 

FU95 


m 

4 

5 JO 

_ 



** 

S/Fl P 

FI 200 


5 

620 

— 

— 

— 

— 

" 





July B7 

Oct 87 

Jan 88 


ABN C 

FI 520 

219 

5 

24 

M 

4 

20 

FI 483 

ABN P 

FI 500 

41 

2150 

90 

12 

32 


AEGON C 

F1.90 

65 

3 

94 

450 

8 

6.40 

FI 88.40 

AEGON P 

R.95 

20 

8A 

— 

— 

— 

— 

" 

AHOLD C 

FOIO 

43 

150 

9 

350 

1 

5 

F130L70 

AHOLD P 

FI 205 

319 

5 

5 

6 




AKZ0C 

F1J.40 

165 

1.70 

209 

4.90 

53 

7 

FL12950 

AKZQ P 

FI. 140 

325 

1050 

13 

12 

55 

13.40 

99 

AMEV C 

FI 50 

158 

2.40 

33 

4 JOB 

— 

_ 

FIJI JO 

AMEV P 

FI.70 

45 

11A 

20 

1150A 





*■ 

AMRO C 

FI20 

133 

150 

77 

320 

10 

4.40 

FI.76J0 


FI .75 

11 

150 

30 

350 

4 

420 



Ft 52 

112 

1 

12 

2 

_ 



a4a.7o 

Iw^aN IS 

F1.48 

116 

120 

lb 

250 






GIST-BR0C C 

FI 35 

150 

750 

— 


— 



FL41J0 

GIST-BR0C P 

FL45 

23 

3J0 

— 

— 

5 

4.90 

" 

HEINEKEN C 

FI. 180 

121 

450 

20 

7 



FI 57250 

HEINEKEN P 

FUbO 

16 

100 

11 

3 

— 

— 

° 

HOOGOVENS C 

FI. 40 

87 

350 

174 

5 

_ 

' — 

F1.42 

HOOGOVENS P 

FI.4Q 

80 

L40 

28 

250 

1 

350 


KLM C 

FI50 



1-25 

517 

Z«> 

220 

350 

FI-4660 

KLM P 

FI.45 


120 

373 

3 

— 


11 

NED. LLOYD C 
NED. LLOYD P 

FUBO 

50 

050 



— 

— 

FU4120 

FU50 

58 

16 

15 

17.90 

— 

— 

* 

izi&L '.‘im 

FI.70 

59 

250 

ia 

3.90 

22 

5.70 

FL69 


FL70 

40 

Z5Q 

35 

4 

7 

4.70 

" 

PHILIPS C 

FI 50 

599 

1.40 

195 

320 

64 

450 

Fl.47.70 

PHILIPS P 

FI 55 

217 

750 

5 

750 

84 

750 

" 

ROYAL DUTCH C FI260 

92b 

630 

126 

10 JO 

11 

13B 

Ft 256 20 

ROYAL DUTCH P FI250 

660 

4.40 

115 

7.40 

43 

950 

" 

R0BEC0 C 

FL105 



_ 

20 

1.90 

— 


Pl.99.70 

UNILEVER C 

FI 520 

969 

29 

154 

41 

6 

49.90 

FI 53 150 

UNILEVER P 

FL620 

268 

950 

107 

1650 

39 

24 

■' 


AENBot 

tdoii & Csnont, 

Aftrf An* Bk Ltd 

MjedDurturGCo 

MedirehBx* 

towwrmFtp ft 

Amra Bank 

Hewy AiBtHder 

ANZ Banking Group 

AoKHttsCajiCon) 

AaUorttr&CoLU 

BnodeBitbao 

BufcHjpufim 

BaMLeeffli(UK) 

Bank Credit & Conun 

BankofCipn 

Badcd Ireland 

Sadr of India 


Scotland 

Bant* Beige Ltd 

Berdan Bade 

BendamrkTaLtd 

BeoefioalTnsiUd^. 

Berliner B«* AC 

BntBkof Mid East 

• BmnShiflej 

BswgMtgeTa 

CL Bank Nederland 

Casata Pemcnent ___ 


% 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

10>2 

9 

9 

9 

9 

9 

9 


• OafetaaeBask 

0fta*NA 

City Uwaz& Bax 

EijBesliieB** 

Cscn.ELf.Eal 

CssMftedCred 

ClKOMireSc* 

Cjs-a Pwdar 9k __ 

tests Lame 

LT.7i*{ 


S. 

9 • U^eCeaM 

9 

*9 


9 

9 

10 
*z 
*z 
9 

10!; 
1 Vi 
9 


Egcatvi Ts:C'p ;ic 

EurtfrlncLrl 

rcarai SGk. Se c 

FrafiaLna Co; 

Fin KeL Sec. Ltd 

• Robert FlenagiCc 

Robert Fraser £Pn 10 

BHflK* 9 

GrnsSapSrt $9 

• ComressWato! 9 

KFCTrst&Saiioss 9 

• HanfreBaA 9 

Ke'ndde&Gen.Te.—. 9 


• Hill Saart _ 
C. HoareiCc- 


HocgtargiStansli. 


Ha»Wea»cLaL 

Hegtrajl Sons Ltd 

UhImHkm* 


lfcCrtCsCiBp.La.-_ 
ItllSk.dto— t_ 
WWe:=aser_ 
tertier>Bs*m. 

t ffamSGeaTca 

WFanlcittlO. 

PtkxJ TrrfiLU- 

R.Raotari&So5__ 

Rniorgif G'nrtee ID** 
RMlBkolScsUad — 9 

feplTnaBa* 9 

ScjiLWritapaSea- 9 
SyniSri bartered — , 9 
Tnctre Sungs S<* — 9 

WTMrgageEtt. 1L2 

UGdedBkdKuwi — 9 
UcW Kina Back — 9 

UaijTrsPLC 9 

WessatBaSLCm — 9 
Wbxavay La*3a» — 9** 
VcrkshrtBank 9 

• Mtuibci s of tiw Acsrating 
KouMi Commmee. * 7-dajr 
deposits «%. Sawwlse bJ&H. 
Too Tier— E2J00+ at 3 months' 
nonce 7.97%. At alt wtwn 
£10,0004- retrains OesxsiUA 
CCjii deposits LLOOO aad oner 
« 2 % gross. * Uortgage hue rase. 
f Demand dcoosit 3.99%. 
Mortgage 1X23%. 


TOTAL VOLUME IN CONTRACTS: 37,043 
A- Ask 8 'Bid 


C-Cah 


FT CROSSWORD PUZZLE NO. 6,333 

GRIFFIN 



ACROSS 

1 Tor some small change flog a 
tree 1 16.5) 

7 Sentry drops 28 coins (3) 

9 Certainly not returning right 
uniform (5) 

10 Puritan showed trained 
hound in (9) 

11 He bills me for coming round 
to decorate l9) 

12 Bay with large, empty house- 
boat (5) 

13 Cunning Eric travels without 

famous explorer CT) 

15 Regret having hole in rake 

(4) ■ 

18 Second-hand handle on Croat 
door t4) 

20 Retreat behind screen, 
exhausted CD 

23 Sudden fright wakes yon up 

(5) 

24 Fonl by team brought about 
draw (9) 

26 Sure many Gnd Eton chaotic 
( 9 ) 

27 About right moment for a 
joke 15) 

28 For missing 7 across sentry 
is shot ! (3) 

29 Shrub firm not back by Bank 
Holiday (11) 

DOWN 

1 A few words from the judge ? 
( 8 ; 

2 Very much like prison to 
Budgie ( 8 j 

3 He's learning to climb 
around mid-April (5) 

4 Prevent heartless cyclist 
causing obstruction (7) 


5 Nothing in her rug could be 
less smooth (7) 

6 Keep secret vault being nar- 
row-minded (9) 

7 One running on snow breaks 
his leg 16 ) 

8 Some campers like it untidy, 
perhaps ( 6 ) 

34 Doctor Simon Cain rises, 
unable to sleep t9) 

16 Plant scientist obtains new 
tin-opener ( 8 ) 

17 One who has run out of 
clothes ? ( 8 ) 

19 Sweet uses two keys to lock 
up (7) 

20 Cheer the centre-half then 

f7) 

21 May be lucltf on Minehead 
racecourse l 6 ) 

22 Mostly masculine, one 
admitted ( 6 ) 

25 unusually cross, tear round 
outside (5) 

Solution to Puzzle No. 6,322 



HOLIDAY AND TRAVEL 
ADVERTISING 

Is published on 

Wednesday and Saturday 

For details of Advertising Rates contact: 

Deirdre Venables, 

Financial Times, Bracken House, 

10 Cannon St., London, EC4P 4BY. 
Telephone: 01-24S 8000. Ext. 3231. 


(TTTS'.ZBZn. 



CMd (James) Shift. LU 
FO ■*» SU. k B«H Maria, ZOA 





Octet (OTtnUDMfc Mtetowlaaui 

-id us Capital Hum Halt Tract Mayn 

Z\i 8? C — Nur. V MM Sw. Cite it*. 

Z£$ f£ sn-mun DN*ggM»qxBU 

C, tm* T'B 

:*$ « SSStSS ftEfc 

■teSSSESi 

IMbMiTfl ,~_U 


3U 




Nat Sami 

KVA Tmi 

■ WlnMTittlll 

is’Cjpwimn 

llltei ’am 

In* 

It'to tul .» • • 
IWCKHWdifl— ■ It; 1 .' 


matte in* • {*: 

niwrtte. - . 
ntj— iiT— ■ - 

aifeMteCtott - 
IVtoK KN - ■jjt - 
IWMtetoOK J4-* 

is 

iS 


2 iSSSSWr: 

_ i« im Tm . — 

Z i£c*c#y« 


*sss 

M4l« 

(CLM 


*WlwV. . - JIBT 

Stew to, PCI : Y«_^*L2 

3 *» ZS.-Z. 49L2 

i«ki» ms 

a*,. I T -wf ILL* 

VK.HJ iXt'lt lilSJ 

fr-vp-j* "c _ 


MUl -.1 l« 

Cert. M. of FR af_Oimdi d Cnftaurftt 

- m ^ 1 ?2 FrtMrttf RratMant ttott Tnots(a)(t)(cX*) 
j I* C*te strtK. saatef, wai, Tefe 0n2 m» 

'T FP.t4B8.0BL teU Ml 

>rw 47»1 

04195471 ^ 

is ?v I as»...-terf : M» 


Kay Fm 4 Mawgwi LM (aXi) 

M2Af 

tJi 

ssti-if £1 

far cite-rt tote* amtetoteiteteiw U to "m 


IS 35 Feanum Sv Mate**** 

a,? mssr-igi 



-«4 im 

-a. LO* ZtartSvmLLaten 

-ML4 0*4 I wFteHmOO. 

-»L3 om MWhaten 
-z3 am 
-CG QV 

■*a3 83 OttriMs/CluafalwrfU 

“■“W* ifiS 


US IMt Trwt Ma m miT i LW 
•UCWNXUMiCMM 



«C« 111 

-IB v» eteteiteitojBj- 

o»* CMrttJts. Official fcmt rm*& 

Zaj- njS 2 F*rt Swot. lmm iGtr sad m-sasian 

-»* a4X 5S»5:.rd I A** 

om Cban HtotaltM Furt Mufrl LU 

204 7771 BM4MI5L London EC2V 50*. fiaUtS 

l “ B»s«S JS 8 



K tSttSSp-gi 

ust tew twagi 


I ntel A7 

^ 


*kj* 
Ml f 
AIM 
NM 

s? 


5?l 

CO 

I ^ 




FmU in cwut* 

34Ftete«5«EC2AtDA 

CW4W|I*~ 

binKnlL 

HteVteMl.1*— — 

- -i tem , tetteto te n 



Antttej Wider Unit TiL Myrnt. LU 

V>*<XVCrl!. IxOx tl 7W* 01177 MOD 


«ntWr^j»*P -» -in l?*3l . i US jtete Ctegi 

teiec-. ^.9 :.*za -..{ oo — 

wxvChry^c.c_— AU HA _J — jte»*te*«teNL — 


Aretear Voit Tit Mfl LU(aXc) 

3iS— Sw. Later EC3M2W 010045122 

»i JWfl *43 271 

S7« t<UI L4< 
H4>VrtbHFF:_AII WJ 4U LO 


Ctakal Mated Uajt T»t M l te f m LM (.It TM (a) (■) 

“ LhZJzmr mu 

-53 m 


Lac tmtt Tran Maw a fWMrt LW 

ftmtlMte.CepteaAw.LCfflni Oi-UFMO 

- atw^w m i» 

Lamattaa UMt T*t MWptel LM 
14 bcMten Bte. Lmtdnn IW1. D1-02S M» „ 

Bgfc—ar "a. ai 2 



Art wright 
1 ten a. UteMte UU3AM 
MwtehK«i. 1X1 


0U-CM2332 
1054 _J aw 


Aunt Unit Tract Mngn LU 
Wrlc Hw Fmcttrs S«, UMMn ICJ 
CteA.teUirU-..'i;LA iUd 
Idh fte Ml, ss ^-.CJ I3cr 

Attain* Unit Managm LH 


Ltoj« YVfcwf, 2 lui Si, LonPM SCI 280 01021*15 


Q-osiai 

- -[ LM 

..J AM 


CmBntrchi IMw Trait Man a y m 
S. Hete 1 !, 1 iMmkdt. ECjajliQ 
DuSng 01-AS6 90IB , 

CUUKAGterM kJi U 

sb ante MX* u 

s 

a*. 

eg teteMi tee ya ®.7 
04. 


Cmtedtratim Frets Hnyt LU (a) 
MOiancut Lte. W C^ XHE 



UaeaMm^canr 
AteuAssTk' — 

Aojrm Utmi W10 

Mfic Siffort 4 Co LU 
3 Elecficlii Si. EAttrgi 

JreUxiSrtl— ~-'«C4 

V*£ihU-l . .px,z 

Maa teCrewterUWT 

Fcrwn ntf ii*»is_torA 
i*woo»:uie«*»i5. — 2*ci 

Kte _.JW7 ' 

BCtena I40A 


CanAffi IMt Trust Mnfn LU 
- L MBal3tBMMMte.KMM34XR. 
MCtetylac IThJ 

LtlfcrIS 

Caantj Unit Trait Miwafm 

lUOmML IMM EC2V6UJ 

Cw«T|L - J»4 2 

[MtnbMaTn- IfraJ 77. , 

«— - , — - bm 250«irt 

(S1-2Z4M4A t -***^* 1 - — pg.« MtJl 

*-* rJ ss-gaagfe 
^ Sssirart 

_ Ite lt »en w »i Tr 


Kttenn. 

KEwir. 


-ms 

-fOS* 


UIiCWbMI_1771 
K!»W .U01 


KCteAtwra. 


—"715 
-L'ejitete* 



_ JwnCitomTK.. 
uo a n nm i a w 
ona 

am 
us? 

IT7 

an 



WwcmMi 
Sana Lot Aom__ 
Stem Social 



Li sse&tg 


_ .MWItt. 

4SJ D2B AohTmID 
-U 

•M _ , __ 

•<U M SteM A w Ul _ . 
-ia IM lHC3»C4.«4tTVte 


Baltic Trust Mana ger s LU 
SQCtetn Lanean tCIVITY 


Elders N.V. 

U.S.$160, 000,000 
11 Vfe per cent 

Guaranteed Convertible Bonds due 1994 

In accordance with Ihe terms and conditions of the Bonds notice is 
hereby given that the Issuer will, at the option of the holder of any 
Bond, redeem such Bond on 15th July, 1387 at its principal amount 
To exercise such option the Bondholder must deposit such Bond 
(together with afl unmatured Coupons appertaining thereto and 
together with the form of election of early redemption enfaced on 
such Bond duly completed) with any Paying Agent not less than 30 
nor more than 45 days prior to such date. Any Bond so deposited 
may not be withdrawn without the prior consent of the Issuer. 

Pri nc i pa l Paying Agent 

Swiss Bank Corporation 
Aeschenvorstadtl 
4002 Basie 


Paying Agents 


Banque Gfindrata du Luxembourg S-A. 
14RueAldringen 
Luxembourg 


Banque Indosuez Luxembourg 
38 ADte Scheffer 
L-2520 Luxembourg 


99 GreshamS _ 

London EC2P2SR 


207 Queen* Ousy West 

Suite 780, fbmnto 
Ontario MSJ1A7 


May 1987 


Elders N.V. 

U.S.S160.000.000 
11 Va per cent 

Guaranteed Convertible Bonds due 1994 

uncondHionany guaranteed b* with non-detadMUeconverdon 
bonds issued b# and with conversion rights Wo Ordinary Shares of 

Elders IXL Limited 

Adjustment of Conversion Price 

NOTICE isteretoy given masfofmnnga boms issue ol Ordinary Shw» matte 


ihalttmeConveralonf^UitwConteaonBondshai,ln a c e a dAne e 
wriVi the Tha Deed dated 28th Jurw, 1984 (and as amended PyasupptamenM 
ihiatD(Kddaied4thJunei96S)Deenac$usiadtrarnAustfaUnttalUrBlS4ic> 
Australian doHaalfil with efted from 30th Apnl, 1967. 


May, 1987 


Swiss Bank 
ntnopal 


Agent 



Bare lays Unicom LtdCaXeXg) 
Uiriconi Ho. H2 RomtartW, E7 

uwbw «iwq . - e*-i aa%J 

On.tan.Aa. — ’ 

0e.A3K.te. UBIB 


Do.caaui 

Ob. tac Oirtv tas. ... ,7L« 

Do EuatrtWL lot ;7] J 

tofflm to-n T«.^Z!5720 

Do. Eijra lonor „99.4 

ObF-houI I7U 

Do. 500 ,v.» 

Do.c«**ra mi 

Dn.SihAFi3.ln.lB 
th.Crtpyite_ 


144 4 
942 
7M 
752 
WHJt* 
105J 
-75M 


-371.1 



Do lacomeTrat 

Do-lta teen Tna — a*j 
DoJiBMAGmnt4a.717 7 
Do Jam 4 6 «ii Tk la _Xil 
Da LfrtEfT TK. Ul. — —00*2 
17792 


d«ii*» Tftimc 

Da Ite.TedLte 
to.WBwieTrW 
JblWiUii. 
mUnAlK 


Sating Fond Mangos LM 
PO Bn 156, Biamhun. km BIG 4X0 

**rank»T*_ Uoin 

EaaeniTn — _ m2 

tear tern* Th |7S 2 79.' 

tew To j 128-7 UB 

temaelrcs, 513 U 

CteilCrtWB 1 694 7* 

CrowOlilocTfl T792 0*. 

GrBM4li& Inc Tit 4amjl217 129 
JumSawMlT q hi on 12L 

JjtelSwrtwTa.. =106.7 U« 


<0 

Fm Nab America 7 k _^SJ 
Fan Sower Ca T«_J0O5 
Nona Arana 5 mc Tk J— 


Crtam IMt Trust Scnfccs LM 

US Oom HOOM, Wcfclog CU21 lxw 

Cm— i tawncan Tu J]j04 . IXL 

Ototo teooea. Tk_^.J12S3 1312* 

Crawl GnwtBTnBl ^974 31644 -U( 127 

Crara iboh lac. Tmt 1BL2 55ZJI -LU 423 

ssassfc™ Is M z 

IfS Crusader IMt Trust M— m Ltd 
fM Rtfgau, Surrey, RH2BBL , 0737242421 

906 UK (Kara ■■ J6*J0 60J) -Ol 0.00 

-02) *30 UirCra-#aa 7L2 79 Oj *0d ZJ» 

520 UKCreohOw 1751 77 d +O.U 2JB 

* 273 teumie Grqwt»__j6L5 6i3 146 

□.74 PjcMk Graofliu--— J675 TV# -KUM BU 

~ as4 !S. Dartinyton IMt Trust MnvL LM 

Dartlpgioii, Town, D*»wvT09WE 0BQ386Z771 

Tool PtrL IM TK__T70L DJrtl — J L0Z 

59*4 OinanMeal Trust Mnafftmant LM 

1 AaMourto Sc, Lmm WU :_3hf , 57X1 


na 


0MKU«m Ptetf Alsit MatetWH ut 
-^3 072 CAM Stcrtfan ! 

-L3 227 

-LU *21 tlMntaTM* 
uuauKSmcw- 

IrZl “ CAStN. Ananca i . 

™ euiLtomata.. _ 

CAMPtaAC%W«**J J87.D 
OAMtalAPrtjIK-Ji.., 1972 
CAMFaCaKiteT 


2Sl®S 


n-4S0999O 
U2 


39 «" 


Ltodn MnMsMttte tttf 

socooeteAra.LMtenUnrjs . BiA007yn 

asssr^=isB! : as . ..i n 


QlA* f 

lw Ltoydi Hi, Unit Tit Mnjn. LM (a> 

- Rovuro^i Om, Cnra**fS** Worttea IV Sotus 


UKSmMteraMftTuJUThA 1333 Jlf 


Coma Eurnag Cwta 

6o*en Paahc he _ 

DiscnHMary UMt Find Managtrs SSS&g^ ** -i 

36)38 Hew Bate SJ,EC2Mlm) , DX-U844B5 Ewawajarci^JiJ 

0tRlKteS24— — UM 124 Jj __J 3.40 

mow tetJ — ... ■ JrtJ 232.41 — J S« E>oteS>iC«ili721^ 

UK e nten te lee 


Cwrttt (MM) UMt Haft, LM 

•Wnteter House, 77 London W»a, EC2 0UM5620 

Ml 
706 
Ml 
S24 


- 0903502541 

— BJtaiCcd 

®s Ukcca 

telanCiM 
Da.!ARam4._„ 
Eottnln . 


JH7* 


OtemgaOJ* 405161 
«M.4 m «l V 241 


GowttAmrffeaaCmm*. 
CMhiHCalK. 
C»n«0old6 Hm. 

Conn mil Cm> 


UJ 
2oO 

2 ^ 2D, CopttaH Aieoae. 
ok Oca Cm Fart te 
1*7 CteCapteUAc* 
ijfl "■ n»a int. 
Stelae had Am. 


Onraunond Fund Manet LM 


4U( Ufc 



EomgrlM 

Dv la comU . 
«»lncwL-_. n 

DalAeon.1 

DffnHOram..,! 
Daltacam) 


Aiiii -• Ob racnm 

tla 034 IfATr— 


3746 

43A. 

1765 



Z DenwnS UMt Trust Miwai t i n tm limited 
1JI 54 Si James Si, London SW1A UT 01r499&388 

L87 OuwalflcIgMCaiFaiBU U&M » 

L«5 OooMIFrcKtiEwaFaJlOO.9 IllS L71 

Z2S :»n«i 4 So»4 teUpFd_ VllS . 46S. __ 2M 

007 OacoBUKIMiFaZjinA 337 Jra __J 070 

m* Oamdln Unit Tst Msgn IM 

2M 3 Charlene So, GoMurah £H2405 . 09UB5457I 

M8 BnoOtCmoiTu (17*0 »7j ...... LW 

CinocanGraMhTa_4SL5 1*23 -*-( 073 

FirEaaTnHt (zJ__ZZC36S 553 -U 01 

Hteta_rrah_-_-I . ■ fig l 1«| -LO 4J» 

bS]5 16LS -*2J: *100 

137 Ja Ol 

nos I — *oo 


01-5086064. 

-4 a** SnmsMt UMt Tst Mnemt IM . . 
J** S Lows Lan*. LomJoa EC3 HOT ^ 0L6H 


GmniVvSnaMCoT 


Grastam IMt Trust Uaipra 

?-17 P «nywBB B i IM. KnwartH Hmtb .0*44 416501 -2 

C tehaw pate firartb JI663 177.3 125 

CrIWiIk -Z J197J 2LUS -aj »« 

MM loM teTZZJsl 4 33 <79 

0Kt6nNAncrCraftJ24.4 26jj -0.1J LW 

Brafuad MaeaHrs LWtcd 

Pluwn Half, Brtf tanfelFrlirL EC2N 2AE 01-5885317 
BfStarttateewTwtJBia 8J.J ' ^ 

Dmteotan/iSaiTi 1178.9 

6itto#ntejTruiZ4ia*.4 

M1 _ 



Gntea Eararaa TMJ 1W 
Crated Bb >» 


1366 


Barrington Mgmt Co Ltd U) 
10 Fesctarta Street London EC3 


Apareaa. toalter Co>_Jsa 9 
Ute—lljau -- Bn' 


«4i 



372 

Z31< 

3 »7j 

-05 

*^3 


iSa 


1903 

17SH 

159.3 

3?-a 




D1-65B90C2 Jan* SmM-Ca Turn — pss. 

H 

SI EBC Amro Unit Trust Mnenurt LM 
jj 6 DrnmUr* 5q, Landoi EC2M 4VC 01-621 OUn. 

22 Deattag 01626 01K1 

M BSfiSter: rgS . Sj l£ !*■ 

ImmuOonalOo-l* (553 58. 

SteCrainBiTK— . — H6» «9.j 

M uWiteK CaUTi J*7* 90! 

SrautebstetfeTii—J— 
j_l EFM Unit Trust Maragars LU 
— d MetaOe CrtMcra. Etebwgta 031-2»,3«2 

mUnaCnFmialJWI . -Z3 L«5 

EFM umn Fmmcil — he 7.7 153.74 *14 108 

EFm Euref oral la HbJ. 27 Jj .. J UH 

(U -623 8000 EFMfinwKAhcFidz) — fisz.8 19*S * 02 ) am 

eFMHteD*B.Fa.(nZKS5 l**l *04 fiMM Mi 

Old eruL«™r '>r*^fe i =53 XFhsteySq^ 


LocM AuUmrtttcs* Mutual tmsL Tst* 

. 01 -5881815 

I : . : lis 

• 4a» o ucai A mum ut 

UMkn A Manchestar (Tit Ntmt) LM 
Winter part, tetter EX3 IBS 
American Tmi —• 

CcwMUTniK 

hcw»BTr«K_. 

MWWNlTM. 

tete 

Tnmrfta»TiwuZ — J37J 



M 4 G Gram (yXoXl) 

“tsra 



if 


Bed Court Fund Mnft PLC 

11 BlsnOeid Swat Landoa EC2U 2UL 01-5885171 

FartHWfli OD5J1 32381 -10' 063 


228 


EF*S fiesoBfOM Fd -... _ 

m»PaofltF«ta>_lto6 XT* _. J 0.92 

ga ass^t jA s 

aSSSJmSzO^^EsJ UUl — I 3 .So 

JratoMayli Z. . .toi «bS ...I 036 

Paedlc May 22 ._____K5S 35-3 -li4 UJ* 

SnuHtr Jap Casttvs Jl936 mu OJd 

-itaauamrtMO 

Eaih Star Unfit Mnfrf LM 
Bam Bead, CMteotam0L537U 0Z42 223311 
UK BaSnccd Trml Ine_|9fe4 1028 -09 230 

UK SalMcH YriS *cc _j993 ■ lpif —os 225 

UK Grate TrgK Acc .ZJU2.2 l*OSa *02 L*6 

UK Ho* he Tnm lacZ-Gi» - 10M* *43 528 

n amraa iterate __t706> - -Of «wi 

Far Eancrn TrwK »ccll331.a JJt.7 -Ol 023 

DwitaTirirte, -16 128 

imc on arm imik — 1*62 oi-3 -oa m 

UKGUtAFMM*(c_-k20 -0| 7.«5 

MSteSntae — J*8J - 9LJ -03 — 

Enterprise Fund Managers LU 
1<MKcSmtL Leeds LSI 2HA. ^ 0612365685 

Partata UK Grarili fed) 69S . — I 226 

Ewritahta Units AdMMstntMn LM 

SL. A|M»]r, Backv HRZ1 7W, 0296431480 
am,. . . - pn? 1174 fLrir 03* 

54J JU -0.2 7.*I 

■hi BJ5J4 -oil *n 

3 5*5 -03) LO* 


— MJ"5p , S4“ ,1 AteT , ta , K241jn r 016392*33 


entaoBB »|MB Unit Trust Mam«cn Ltd 

Hoteara mia. )OT5 jyi3 ZT 0.7? uutmM.\Ubi 

Sjfcrruz:^. 0 ^ zr «ii <Z£sr 

avteteuj.^srz: « ra3 ZL on c iS^ 

teVteMHltolnc 111.8 U5K **"■" 


CradiTn 


ic&Kas^ 


V* fte* im . 

“ aBS a^Aia. 

Haeibra Gcncralt Fimd Manem LM (g) uccanHHU 
Admta, 5, RarttWi Rd Hatton, Immi Ebm jM»rara— «l hc._„_ 

teterte.0277227300 KBmTMMI* fiKBSCL—., 

M 33 iS SSiSSsKd 


Flrtexm. 

CdiaFdlK. 


Wriu^seate Proflrtulvt Mgmt. Co. 
15 Si Jara«r Plate, Load*. SWLA1NW id- 
Prasraanei*. 

PraanMhetac 
inctaaiMMl l« 

iBUnaomiAc 


SScrMTa 

NwU4mc*CK 

Prtuad4l(rl<plW_|u£M 

TnatiBcTm 


Hmrtras Itenk UMt Treat Mutfvs Ltd (e) 



1300 

Hm*»*mrreal>Nata. - 
Hamlra CmteBaTniU . 553 

HtrawitetgiiBwat.lUL 
— Hwymtea iamTa^ H»3 

ia Bas afsis^z^ 

6HH]] Cquitar 4 Law Un. Tr. At fa) (c) - H wtes gamtoaMa .»« 

- tS 5i G eoig« Hie, ConwaUiw Sr. Coraati* 0203553231 S***® CtvTJlWJ 

m,*-- *- • hh • aa tod —i a 233 


DRMBHGUIIKf 


Bmdn Dolphin UMt Tit Moffl LM 
5GU01US1, LMMCC1A90E 01-2*84400 

grss! 1 d f fez^Si , « da 

— J M8 


Bridga Fond Manaym (aXO 
2a IteUBfl Aaew, UW90II, EC2R 7PJL 01-588 6064. 

Oa*u^-!^_ . ..^ — j 7^ 7? 

ax m- - 1 2 isi; 224m 

tew* 13830 *U 

|« Rawrar <1.4 *5.1 





I«*to Haw„. u .,.mi 1 
S«aM Owai W „|wi 4 

JJSSS JS**! — — 2W40 

.-hnj ums 

(AKva.Uwsu |I«i3 lirtj 

*6 m3 


5 T""**- 



ill 


Oo.Au. _l57fl __ . 

Dca»a« SWed. ID*' P~*> M* I |4« « 


ta 

a 

144 
are 

OM 


HtecrlBCTMAu 
HtetrlncTKIK 
UUfFallBlTilAa 
OUiFcdlKTnlM 
n.A»4«reiT«A 
F» Lad To An. 

EaraprTn Acs. 

CanmtTnai 

F 4 c UMt Managsmtut 
1 Laarmt Posamer HM ECU OBA 
FACEorapcmiiat___g79 

Fa c r^Lnwn rdZHu 
FAC FiaawaM S aidZhS* 

FA C Fhri WlFd— 
facmtms ZZaidf 


wteiac. 

Daaiwg 0277 217230 

Mil UIHRU.*) 

wmUmsi 


H ** ***** Ltd 

3-2 Adwta, 5 Rariclgn itnacL Hana^BranMedL Kim 
TM o^f^t, 0277 227300 Daauaa 0277 2177** ttmiim 


Brtlaarii Ml Trad tonrai Ud-*N HIM SUM* 
IM Trail Maatftn Ud 


FAtH*raM««F4-, «M> 
FACOranmlMN— rin 
F&CtfKOiwmfgraL,. 766 
FAC UK lacao* Faaf_ 426 
FAC US Mato BwFd.. B* 
ru US SouHfrCa'l -JSj 
fUtart Fault* 

Fnc tatoMia m 
FACteBB*H- 
fiCtaBMli 

Ficamw 

F&CSarmLnlAaa .. 

■Ll*4Hw»M 


SSS®-2 - ?S 

£au*aa_ 267.9 25*1 . LS* 




MU Unit Trust 

asnfe 
atssa* 

Bjeag sr- 

s-r SUSTKfi 


teteatarai 

W»M war Mai lS^jsn.7 





Financial Times Friday May 22 1987 
































































































Financial Times Friday May 8MMT 



nKfthsss wtitiostuz 




























































































45 




s 




Financial Times Frid ay May .22 1987 


FT UNIT TRUST INFORMATION SERVICE 


FFM fatm Fuad Ltd . 
n Boa IMt HimMA Bertram (SM-JW 7og7_ 
rrurMH^is i»* mi 


13 W 140 VP 


Far EJUt Growth FM 
IP* Bc uto ere Want. LmiHmi*g 
49*J 

FHcftty MeraBtiMOt 
9 Bead M. Si toller. Jertay, Cl 
Dwlm 33201. PO •« 6Tft Ftodtoi. 
tnwJmwiu -Mia 110511 
l*W>i Cem ApdU J 1*074 . 

*■ «!.?*?■ *** JL-l £MU 0 . J 

Owreir, t— d U1 15 

OoUr S*>»7lTULfl„J **BjB*_. 

rtrCnu) ™— IMtJT S?4' 

rmotr m— - — JviOla a J. 

Onm r«*m - 

Ptcrtx UI 

Saroal Gr*«U Ui .AW 

warwul ... . . a»>fl 


Fkrt CmnrcrtiUe Securities Fmf 

3 Boa*— a Roy*. Luamboorg 4M1 

NAV ML* 20 1 S1L29 I _ 


Hmtim Bank Ltd 
d{ Bnhaxgilr. London. EC2 
H»"*ra Pacific Fund Mgmt Ltd 
2110 Comnqm Cimr. Hong m 

MMrg«»ig . jugi 15 00 

SA*wr«u*>7i *.7« 7 ?ti 

. wu «n 

MiaCSnMjfli — Mb 41 2025 

_H*mbrot Fd Mgn (Cl) LM 

PO Bo* B6. Gufarury 

UK6>Mnro 913 0 b « 

Seeciilii* FiM. _ .12*9 M2 1, 
5WiMi*ta<«f Fund .-11 fab 121 &C 
tMvwMFvd— nra unor 



Fleming Gran 

Loreto Asms R>, 


ZSJfcpHwIIAve.Ei 
19 A‘ 

a». 


Fort** Securities Ma m i w t Ltd 
P0 Boa 887, Grand Cgnn SWI 

loodob Agcab: Q1-B39 3023 


583 a 


Health 2000 Limited 

aaB^^tartTj - 


HeHt r u p Scandbuvian Fund Ltd 
TyndlB House, DowMJ, MU 

FdUaylO*4J 155.4 


01. K8 am Lurd Brother* • Cd. (Jmij) Ltd. 

PO Bo. ica Si HrWr-r. Jmt. C 1 0534 32361 

jwwrm . mo 12 ooo 

UffOia lx IK I - -*12527125001 0 4 

Lawmxtlx '**cl (302212204130 

Cm E*»M. ■ -.0201412341.41 

Cr<«4 Bond' reel 11002 1410 05 

IMard load I Acc I M0J0 20 04 

La Foadi International Cmagex 

(Ml 2o521 l Brerieiaro (bnjtf. Liueta6o«r* 

■ 1*2 ! - Sll-BP * - 

1 0.45 

Lloyds Bank (C!) UT Man. 

POIdimSlMf'.Jmq MM 27561 

Liar*iT*.0-j«j. Bjji JB.9I -105 052 

uor« t»*u “^ uooi J ions 

Hra OHM) May 27 

Uaydt Bank Scorn Sw t tee ria ml 
1 PtiC* Bel -Air. CH-1211 Chm U (SwUarfaad) 
Tel: 018-41(22] 20 86 11 lea. ~ ' 

Unidi Wl DoOar niOJ 

Lhqlh l«1 bW iF'lflM 

LlmAM'IGnMA iFrlfibJH) 

IMIMIm iF>77U 

UorthiBt'iMOnnka.. I13SJ0 

Uoffi I pdl Pao he SFriaXD 

UwnM5lHBvtaZEMS 

Lloyds tntL Money Martcct Fuad Ltd 
PO Bo> 136, El Rater Fan. Guernsey 048124903 

lisja 

2.44 
SA3 

—I 2.45 
228 


North Star Croup of Csmpuin 

II PrDrtHjuOra lumMiMJl (LHarndMOT) 5A 
25 Bid Royal. Luarmoouio J* 146775 

UwimFimI -. DW1770 1700 

Lon On* Furtl BnrUhJ) ■ 1370 *20 

HajtiPrrl Fuad _ .. DK.1O20 1430 alO 

OoMradd ._.DKrl25£ UfaO aLO. - 

Sreatai Lo-Hw.ro - DUI07O uno 

lHMH#hdgmn.Obllia 1120: 

Mwo infi ft. DKT4JQ 940 

Norway Fond M iiayem wt A/S 

ScMpergl 29 0154, (Mo 1. Tel 618100, Norway 
£U HanreyMh Fd FFrlK.76 107.951 J — 

Oppenbeimf SccuHtio Ltd 

6b Canon Sl Landes. ECflfl 6AE 01-3294146 


:i3 = 




Fndtm- _ 

Iw FranJ 


20271 

ML571 

25100 



FenfpH A Coin . 

1 llortaoe Powatey MW, LAndM EM 

Fl£ ADAMIC Uh 20 J S1707- 

FgjEDjt^Jayld SMS. 

n [Hi 

CHrinHM,C»«daSc.& 

m mSSt 

oggSSSicSCri 

C^iowidi — 

0 — Ma4K'ncy8w> 

E— Sternal Bonn 

r-OW>Aaoa«, J 

S-TedOma ... 

N_te»Boddi_ 

L-llkEiudMl— 

ICaMOa 


F drama Fund 

eft Hon Cored Ada Ltd. Km Hx. 3W-3Z5 HI* 
MttMm WC1 01-404 0344 

HAV NTUB25, IDR art* UK2UC2. 



Hcitdmoo AMntu. (Guenuey) 

PO Boa 71. If* ParLC 

GMFwei^-™ lao 

Fhm la Piw. . ...... Q.4B2 L 

sesasifsszfe i 

Grltet Hld> 5 Prtlla_ SLW) l 
tacAG-tPVMla^™ 51.711 109 
Ms* Income £ Prtn»_J£aMB 0.71 

Hcnihnw Man agw u u rt SA 

. 28 Baotaard Eie m w el Sendtv Lao. 


0614 29111 
-10 ZOO 


I m**4 dm Par 27 


DrMtec 

Fredenfc St, Bm I 

(Mu If* Grontd Fi« 

ORMn fin Ml Fd CS787 

RFC IntnroaH Portfolio Fd Magt Ltd 
POBro 30927. Hang Kuos 58908*40 

SSSS'SSfffcrfS ig = 

aur(B9 hiCMMi FdT iQ*5 1.7* _J — 

Pacific Basil Fond 

10a Boute-ranl toyA Lnendnn? 

NAV^_ I S2B27 I - I - 

Iw. Mu UlC. tor. MtWL, LtA U*doo 

Pacific Growth Fund 
aBo ^HswL U^rM^^ ( 


London interstate Food Hamers Ltd 

PO Bn 06b M . . 

UMlmlMr mQl_ZlKnOLQ 106.1 
uki laum man. 


_...J - 


MFN Ltd. 


nsrCtartono,UC 98000 Meroco 9350 UE5 

'm 3 : 



H =d = 


JmnSMiFuad| 

MFwSnarCosfl 
PoQBc5«bFiMdJ 
HeasRnSabPO 
UKdwUFd 

EmpwSdO-Fdl 
- UKGroadiSU>Fd] 
DdurCadiSda-FaH 
5MMUgCA|65drFwd 
VwCan&M-FuBdB 
DW Can Sd6rnd 
■SFrCMiSrtbFaid 


HendertM Gtobal Strategy Mugnt SA 
20 BM EnaowdlrnM, LoMtwi (UOlSaW 


MSG (Cayman) Ltd 

PO Bn 706, r a dial Men*. Stand I 
Adams E» Mar 19— -JsM.Bb 1VB 
teajBM & £toj 13— M 19 

smt.imu -1 TtSjjj* — - 
lten.Unni. — .is 





M e Bo n a a it S Co (UmIm) LM 

181 Owen Victoria Stnet, Loaded EC4V 400 
Deal toy No: m-296 6)87 

-OJKt 

-0071 


Paaie PenieCa.- 


Framlhiftan Bu n sn Fuad Must. LM 
PO Box 71, » PCX' PWt, Suermey _ (H81 -265*1 
Far (Ad Fixid(W«dl — JtUEl 84 

iwmSGtdMtMTMJiaais ana 
M n ee d Pei H dle J £0.713 0,7 


IFWij«344 



— MtDDMntfMi 


Frankfurt Tnat Investment — GntkH 
WkMlOD lr D4000 FrmUkjrt 

FT-hUrWHi — — iOiMSJU 4fcjJ 1 — 

FraU BleU-Fd. IDM132.97 139.W J — 


Mauerdloil Pomade— 03M lJffl 

CDWr C*jh PortWiaJ— fl ise.91 J-KS3 

5terl MB CndortMuZ— 58119 18114) 


5(erlMv c»6 PmtWiil— 5 
SFFr Cash Pwtfosi-— SFrLOOOT L0K71 

KHI SmmH Fd. Hogra. (Gnerasqr) 1M 

PO Bn 16, B Httfi St. SI Pner Port, Ctteniw, O 
c-^r— r** ----- ™* 7A6W -8*1 3.92 

HM Samuel liw Mtment Services Intf SA 
Jenty. PO Bo*63 Tmb *192274 Tet 053*76029 
Bew.PO Boo 2622 . TNn 912290 T«( 4131 


_ MAV V M, wiMd FDdMgNly. 

— Man Inter na U opoal Futures 


SiearQuiy, LonrllwcifUiWin EG3 
3738. rtlB 885*31. He* Vort 212 HIZ 3700 
HINT LIMITED — Ord-_ S30JD 

HINT L|MITCP-ulDC— X1Z52 

HINT GTD LTOSrr A_ Sibil* 

MWTCTDI.Tll-SMC.ln S14*5 

MWTBTOLTD-HgiIW 51356 

MWTCTDCTD-J)n]9M H073 
KESTREL l IIRITED—X HI 33 

H awt mra t fntaraatloaal LM 
Bade o» Bemud* 

MelBFC 
BdstBFI. 


01-626 


_1 z. J — EUHFiuldL. 


PRriiiter Bond Fund SA 
10a Salranl Royal Laendrars 

NAV 1 11529 I 

Perpetual UT Hogra (Jeruy) LM 
PO Bo» *59. a HeUer, Jersey 

omeorr bwtwOlFi— I 

OlHiwe AnOwtB Fd~( 

OtbOwr EenpogCos . 

Offttwr EtedMda ft - 
OFhlBrf Fat Um Fd 

Phoenix kstcrnatioffltl . 

PO Bn 77. a Pner pwt, Guernsey 

Intr-DnAM-pM- lift.40 

F» Tab FW~ Jm83 

lid. Cnreecy Find — IC3* 34 
Dettar Fid. let. Fund |Bl*7 


Premium Life International LM 
PO 6 m 141, a Peter Pen. Guernsey t 
GT Hawed stenwa — 541.0 iM.g 

GT UaaMed OoH»r MSB iSCS 

HmMrMaUbtd5W4~-85B8 1700 

HmkttM Mage DouaaJXiLO 222101 

Fw edar prKxs rlrg o*u 7137* 

Prestige Mamgcnmt SJL 

2> Bonierard Ennunuel SmrlK Lm. .01035221902 

Or’cS Prta Mu S, _J a7.I2_ f — J — 

FPcR F’mt Mayfly— J FFilOLTZ I —J — 

Protected P e rfor ma nce Fond 

Bae707, Gryfl Cm mRnJWl. }Jn TeL 01-5894567 

•wtSpdem no Tocntw ' 

Providence Capitot International LM 
PO Bob 121, a Peter PL Guenoey . 0*8126726 


*81 2137* 

ii 


FreUsfMr Fund limited 
TO BwH U1735. Haadta^ Bermuda .8092957*47 
8B0 I — 


ST MMiaaenrent (UK) LM 
M Floor. B DewmsUrt So. LM 


Tri:Dl-2S92S75 
UmOoa Agent* fan 

ss,wn^±m 
gsaessa: 

GTiHvitKcraai.- 

GrAuiFd.UI 

OT Ml SwfeeUlu , 

GT Auboaa Fait) ___] 
GTAwJrpwfttrL— I 
CTW*«»H»F«lri_4 
ClSaMftMtiT 

CTtfeaoeHwd Farid U 

CTDnltrFd-ITI 


LaodflR EC2M 4YJ 


GTDV I1W Faftl J 
CUw«w7»»aWr-~] 


■BrUMTMhftUl— . 

K 5 saa&a± 

TTrcnrotoofiM— 


^TUKSnifl~0u(d034 


russrtrwrfdui J 


M 


THex: 886100 

-055 0S3 

*0.0o 879 
-019 814 

f -oiS m 

_ 

87B 

ore 

S 3 



JwwweVen 




it 


^1 

SFi2&22 

DMlSjfa6 

CUB 

*13.45 

1*44 

1555 

3027 

1069 

d 

-012 

411 

rtiia 

<M5 

SJ9UI9 ZL36 
*4229 4*52 

CSQL2 5305m 


217 

□057 

0239 

B3 rd 

78* 

6AB 

□929 

S2ZJL9 

2051 

2357 

-nm 


S29J36 
DM49 JJ 
V412* 


+ain 

+001 

— 



WtatdMHoN latadlm tad, 


f marn iiaiiij 

FarEmEMty-. 

N. Amenta* EMty— 

UUK6Nakn tn«r- 

UtM flon 


— SurUmBM*- 


2 a ttanr Axt. LdMfcft 


MMMtn MN. Agents 

WLECf • 01-6291212 


USDuDarConacy. 
DaulKlBiw* Curmy — 

I Franc Cumwf*.— i 

rVntMm- 
tCHrewy 

Mai ' 

MalNL 
MM.Ti 



51017 

nob 


5009*1 LOIN 
S145M LSt 
0.993 


8987] 

Lira 

89W 


li aw 

USE4?0tl 
US CM' 


MedReirancan Fuad (5ICAV) 
Z Sudeaaid Royal Luxeolwm 
NAV Mar 19 ' J Eoon. 


HanMn Intetnatiaral LM 
PortlaidHM.BUlataOa.triea(MaH 0624822091 

IMUlIlm- HlU.4 IBJJ I — 

Blnutacturen Hanover Genfunds 

PO Box 92, St Peier Pori. GuMwejr 0*8123961 


Eoiiun I — l — 


— MUM Bank TsL Cbhl (Jency) LM 

— 2834 HB St, 5UWl«r, Jersey 055472156 

— U.Bk.O'UweGlii pu U2J| -06)106* 

— M.U.O'iMreBsM #!.*• IN* ..VJ 57V 

^ B1 T- — “VMIIll^ -- 11931 -Ui — 

— HIM Britannia Intcnatinnal Limited 
PO Bw 271. ttiteosMB HWM, Owe* Street St HeSer, 

055473114 


4kL S 

SmFrme 
[ [anurFos 
US S Roeg Kong 
JawaFnCT 
OFS PorttoiNi, 


23Z7 

33U 

2SbJ 

1B7.7 

153.7 
2*33 
2424 

216.7 
1632 
2455 
1946 
2b9.1 
118* 
U6.S 
7055 
17*7 
2071 
3090 
108*1 


For MBar WKO rtay 0*01 26726-9 

Prudential tnti Finance Services 
P.O. Bra 61. St Petar Put. Gnemcy. 

CndkFod^. LJOISJ 12 

BondFand^— fol.44 

Sttriag Balanced Fd Inm 

Dollar Batmrd ft 


HWfeam CoM) (W 

asiempB Jim: 


■UaunrdSHidag 
Haniged Dodar 
Sen 



Vaahmgk Cmtacy Fi 
kaaowT* 


= 3 a 


IJD.ls 
13 JOr 
1008a 

^^■suux 
14580* 5823s 
^H5F30J» 
5.070a 



- Jersey Cl 



in Gtanal Fundi limited 

cAa fawn. 8aa6 o» Ireiwd (I0MI Ltaihrt, 

29 Finch M. DMftat >0M. Tel 062*29661 T*k* 

628270 «... 

9*M£SS*~. ^ 

MiitaO, “ 


LC. Trust Managm LM 

jssaxsoir 


209*1 




Inamfodrlid 
JaeaaMAGMMa) 
Jersey CWIrl — j 
£ lArg Carmcy 4x>] 
USMbrOmH 
AmcwIPcGwai] 
MAhUWUH 
Mwram 

a# 

a — n n iGwwHI 
auuitlua rertwvfl 
CMMOweMinJ 
EaraOBAi P eijorsL 
FArEANlrimrad 


The India Fund 

UoH Trau or MM pytteOd Hiyri „ IJ lna . 
(A> HttrlU Line*. 119 Caanoa SL EC* 01-3820993 
NAV 95.4 OSIN Her WloranOo* - 


■ eehrl 


- ^ dSS 

»IW)W 

sa 

Mcunfrii BENCRAU SgA 
M Boa 152, St r»ht Ceaw*r-.C1 . 

8Stt5m;t^53 BSfl rJ 

■ertrest SA 

22nwdf t> Cue, 1211 Gcocv*. Swtontod 
SjbwbI Ptmalw^, atfkOktl 24690 1 


Induum Asia Invest Services LM 
260677 Ow Exchange Spare, thwg jCrng 
T«4: - (SI 214231. Tin 61*13. Fax T 

ASimGnmarmd. 

S&fe2f^=r~iaD* 

KV H rte r he he tr 

PO Bw 8569ft ft* hmI«m 

ChWAM (DPI AerZLjohUS^^ 


«*M Aegrt Bfenugenmiit carpm 
FO Bm US » Ww PM, Cnerwey 

rmaCM >4 SU8J4 

CAHrnuu^. 

GAM AtMmer- 
Lah ASEAN — 

GA>«VWVH 
GAUBawmu*. 

GAUBeHM 

CAMImiaw— . 

MHtWPAWML — 

CAM line* 

ISS&iE: 

Stitt 

UUHfWWMi 
AAUHtdrjsSrJuiiai} 



171*7 
dm re I n 

«yr 

r.i6d» 

UOLO 

M7Q7* 

U}4*0 

S340M 

» KM 
JJH. 
SFtlOl 01 
DMI013T 

no, 1 13 

is 

Esr* 

SKS 

W 

1P131 
SlM.f* 
1117.41 
li 14 .'I 

SFriga** 

JS»& 


0481-28715 


JJll LSD 


tntwnatlnnal Band Trust 

ft BoulennMtWil Lumedmog 

ffiSSBMK& 3 TMI I 3 SS - 

International SpectaUBr FUnd 

sjssr^risa i 

MvestiHemciiti Attantignes SA 

aisffirtBBa 3 °s 

Invteta Investment Management 

29i Broad V, Si HeHor. Jen**. Cl 05347reH 

CiRGiwnFi^— -feiVS® inrul 1^55 

“'^^32 ™ zd*® 



Awmh SbUCoi U1J2J50 

GaH 8 Pm Mosul L*97 

Jaoaa Wmow u>_ soil 
0U9nGMS>Smr(xl„ 1*29 
tanuatfa iBtaiftax— 75*4 
WorMoUthureti)^. L473 
Wv4darTecMM(z>_ L0S6 

5 Mag Potions (eT_ UB9 

lU FmoMl lam JH31B.46 1 
HIM SrHmwi rmd Uamews 

GUTdlOH - TM l 

NiMLmoMinmmra 
AHrMUtol 
AoAi Fmm- Uni 
Jxyoi (VtMTh Tmitl 


Putnam imematiBial Advtoen LM 

1042 CoNiSl London W1 . 01-439 1391 

&«*=! SB =1 = 

srsasS ^ I d = 

Onantmn Fd HV Corncan 

117 BMRomgaie, Loaoce, ECSM3TTL 01-263 20BL 
*ftWdT«fC*Wre.Anmtma. 31^063*181 

-OummFwd^ 505j*r a»tf — J — 

Ouantus Fund 

30a Baulei anHl ei» L 4L *i nireBi wg 
qnauFwaUAV 1 SlSJO I — J - 

BflOteriHtiMM CummnAties 

31-45 CnMnei Si. LonmnffC2V7LM U-6004177 

Rwance Fuad NAV tUMJb -4 , — I IM 

Dm deawt due Jwe L 

Quitter international Management LM 
PO Box 20B5i Peter Pori. Gveiotcy 0«81 

S 3 &.ssr-=i S 

RothschM Asset Management (Cl) 
SjJvian'iCvfieenuer . 0*036?*! 

ocAwticW- 3s»n 

DC Sp Co- ]W?Jb 

KCdOMaadnyTt SMJ 

uo.tr — aw 

OC HesgfcgFdn- 


LONDON SHARE SERVICE 


BRITISH FUNDS 


Price * or VMd 
Stock . £ - tat. Red. 

Shorts" (Lives up to Five Year*) 

IMA* *99 asa 

99|1 . 38? TJ6 

38143’ . .. • U82 1 632 


UOH 9911 Trees. lOpc 1987 

■WJw 97^ TrmJpc 1987 

101% IBS* Treat Idle 1987 

99V 97DfTn* 7W* 

102V 99ftExchlOW-BB 

101 j ij 96fiTirai 9Loc Cv'BB 

93 .jUrampon 3ot '7B4B — 

, 98AlTieav 9ipjc ‘88 

105111 101 Sft real lltjoe 1989 

102 i| 97)i(Tms 9lyoe Cm 1989 _ 

Truss 3« 1989 


89,*.[Tre»s5«198WJ9- 
, lOOVExch lOlipcCr *89- 
lll£ ]05VTr**il3«19«tt- 
’ 100fiftmhU«i99WS_ 
110.S1 UHttESi. Uroc 1990_ 
91U BMjfTreas. 3pe J990_ 


99^' ... < 7.7BI 8.40 

10111*— A ' 10.H' 8-51 

UnijxJ-. 1 . I 9841 861 

96J1J-A ‘ -— - 

101 A-A 
104*1-2 


t* 


lOOAl ClifTreas &HJC 1987-9Q» - 
105 — - - - 

. 891 


Tress. IOpcCv 1990- 

Bl^lEwh 2'jpe 1990 

I JlI3MTreKlIbKl991- 


B7>i FdMiaq 56DC S7-9UT 

BOVIreas-SpcOTl — _ 

110>i lOOA Treis 10#eC»'91»- 

109*1 101^ Exch. llpc 1991 

Ub£ 108 A rre»12Lpc 19923. 

1066 97«Treas 10x1992. . 

4^3 47J}ITrt*s. Bee 1992 «15CW5 J *7,; l- A 

108 If) 99J5)Trt» UUzpc Cx 199Z3— J 1063J-6 I 9A0 B76 

Five to Fifteen Years 


UKHKxch. 

UivEi: 


_ IApc^-. 
:ch 134JX 1992- 
rraslOpc 19933 
12&*1995t 


19933 

1*56x19933 

il31ixl99»t 

i 1**;X 199*3 ■— -) 
131ix 199*3— J 

i.l0xljtl994__-^ 
LlZiic 1994. 
s 9x199 



m, W 

uTreas. . 

9x1992-963 

_^ . 'reaslS4X 19963 _ _ . 

i 

96)1 ConvrrNon 10 k 1996__4 1066v 
116lj Tm*s U’dK 19973 — 

100 EKh UH2X1997— 

Trets BldX. 19973 — 
a.BlmcYl'B'S. 

_ jExCT 15 x1997 

95J?Eh*.‘M»oc1998_— , 

78ifjTitio (Ax 1 W5-9B3 — | 

13 rtlTreas. 151^ *963 
109 UtExcb. 12x1998— 

95Affreas 9^x19993 
111 itxch. 12J4K1999. 

101* (Tiks. lOlyx 1999. 

WilconwrtWn 10<4Xl W_, 

30 fTrffjX 200Dl3ftidl3- 
916'ComersUa 9x20003- 





9.477 8.99 
9J9| 9511 


Over Fifteen 

9&fl[Tieas time 2002 

96 E*cL9pc2002 

123 ri^l3VxaWWB_— 1 

98,1 Treas 10x3X0- 

limTreas.ll>«c2001-M. 

9BR Treas. 10x2004 

aVFwKfliKiyjWWH- 
95UConrmin 94x2004. 

95 Confemui 94x2005. 
103A EtdOD4x 2M5 

US rreas. 174x2003-05 
83 A fTr.as.Bx 200*063- , 

28B)TrJx'OZ4»A , aOpiD«d_] 
57 i jxi*eni«r9LK2006- 
mirrtiB.114x200M7. 
87)1 Titos 8>«c 2007 3 — 
126/. Trets. iSdK W-OB— 

944 Trmi. 9x^0083 , 

BZS Trees Bx 2009 

61/. frtas. S4X 2008-123 — I 
81 frits. 7&C 2012-153- 
USIlktttL 12x'1307 


Yean 


132,1 


Undated 


454] *0,1. (Consols *x 


^ 354WarLom34pi3— 
51,fl 47 Coar.3l.-x '61 AfL . 
34,^1 304 Trees. 3x '66 AIL — 
25 , *iSo«oh24x— 


25 lTrees.24x. 


mn-6 

50®. 

-A 
-A 
1-6 


I" 


958 B.93 

859 8.74 

844 856 

9.01 8B6 

95d 891 
872 876 
952 892 
879 874 

850 871 

801 853 
859 869 
9H7l 8B2 


891 

876 

692 

893 

894 
8861 


BRITISH FUNDS — Contd 


19S7 
K> Law 


Hock 


Price 

C 


► ar Yield 
- las. Red. 


Indu-Unked 

m 

131, V. V25I, Trees. Sx T» (297.11.' 

117U ldSfr Od See'NO r 13391 J 


99AJ 93l ? Da. 2x '923(3858) 1 

19R.ii lia.l 1 Do. 2 k '96 12&7.9U 

(308 BJ 
0.71J 


(1) U) 

DOII — ,V — - 182 
llbli.-l. 082i 1 76 

98:jl-i < 18*1 236 
127V— fi I 383) 354 


jiu luor*’ 

108 I 9Bs« Do.2>»« 09 

rniij 103 ,;' do. 2 i 7 k*ii 


1310.71- 
(27*. llJ 


KM.’.'-S 
106, L ad-, 


95 iA BfaiV DO Zhx'13 
103*1 X DO 2<]K'lb 
101S 91 ?JJ Do. 21 tfe *20 


1M 61- 2 
010.7)1 100 AX- u 
1294.1 1 1 IMUj-C 

WAI-* 


(294J) 

051.9). 

02281. 

.... 132731. 

77V Do. PgK *24308531- 

Prospect he real redemption rate on projected Irritation ot (1) 10% and 

(21 5%. (01 Flgum In parentheses (hmv RPI bate month Iw Indetlnd 

la B months prior to Issue. RPI for Sr member 1986- 3878 and for April 

1987: 1018 (fOtHMd at 100 Jawory 1987 cenversten factor 3.445) 


97 If I- A 
BZJfk* 



INT. BANK AND O’SEAS 

GOVT STERLING ISSUES 


136 


1 1 S il 


1VP, 

119 

1D1V 

99*5 

131*1 

w' 

5F 

U3 









^KTT 1 ^ 

‘■fl' 

1 1 * t *^l fV v -T ^ 'i LiMBiff 











hVi,: 




I'Wj 




BU 




iiT)t 



*lf*V 





•J ; c 





988 

9*8 

980 
9.75 
936 
938 
951 
9.4B 

1125 

1U4 

864 

982 

981 
97b 
9.72 

12.45 


CORPORATION 

lOS^tehmtnghmn 13 »jx 1969 

10SV DO. llfjX 2012 _J 

IDO 16cm1nfi^cl9B7 .. — _J 
B2VCLCfrCx 1990-92. 

97ij«em 66x196587 
12H3Lee«h 13*3x 2006 


3*zx lied. — 

5*jx’85^7 

B8 1 Do. 6J<x *88-90 

25 I Do. 3x70 Ah- 

lOSJjManChesar Uljx 2M7 . 


LOANS 

ioM.« 

U7W-4 1 

93teMT 


ffi 


UI 

*d„ 

U2V<dl 


1239 935 

9.77 951 

HOC 11.46 
734 840 

682 920 

1031 980 
1250 - 

731 880 

10341 — 

10201 10M 


COMMONWEALTH & 
AFRICAN LOANS 


92 B11«KZ7Uk 198892 

205 165 5 Rhod Z^pt Noo-Asstd 

7614 65 Do. 412XS7-92 Arad - 
175 1 120 (Zimbabwe Aon 


417^*ti 
202 1...- 
74iJ 

140 n..._. 


7891 920 


-I 622 


LOANS 

Building Societies 


Do. 10 Vk 27.787 _ 

Do. lDitfc 17887. 

Do. 9^x7.987 

Do. IDA K 21.987. 

Do. lli(K 26.1087 . 

Do. U '2X233187. 

100 Do. 11A X 21.1287 - 
Do.UVicl8J.8a — 

1011)1 100" Da 10 11x15288 

Do 1013X7388 


9t 

looul 
100, v 

IMA 
10013, 
Ml A 
MIV 
unU 
Miff 

Ml A 
101 


1001 , - 1 , 
101VM* 

22ljl.- 


1 100 , 

iui J lOOVOa 9|lK 11-488 

102V 100/, [ Da3V)ClLU2021 , 

23V 23yDo.3^KlLLn2021(2SpaG 

Public Board and Ind. 

91 | 87 |AQrXUL5x '59-89 I 

46 I 40 Riel- Uhr. 3x ‘8' — ~~J 

Financial 

ICffJ 99 llnv la Ipd llx UiUi 88 _| 



hi 


5 62i 10.75 
7j3 U.40 


107 

% 

133V 

10lV 

100 


1021(1 DaUlmeUmln.'M 
BJtjj Do 7VicADbB9-92 
106V Po.l2i)xUn. 1*19924 
B1V Da 7V*A '91-94, 

09U Da 9 pcA *91-94 

85V Da BVkLb '92-97 


M3 
106 
96 

mV. 

97V — 



FOREIGN BONDS & RAILS 


19*7 

W* Law 

25 I 20 
25 I 20 
25 I 20 
25 I 16 


Stock 

|ChW»«ixUn8. 

Oa 5x1912 

Da 5 k 1913__ 
Da5x'25Bonr. 


£ 

23 

24 
23 

16 L..., 


*r% 

Crass 


YMd 


Price ♦ or Ohr % 1*4. 
C - - ’ Grass i Yield 
«2tf ...... I 330 j <833 


FOREIGN BONDS & RAILS— Contd 

1987 

moll Law Stock 

*5 42 Gree* 7 k Ait. 

45 - 44 Do. 0X 28501 
47 45 Da 4 k Uueo Ass. 

OS I 58 ’Him* "24 Ast. 

1*04)1 12ZVHrtroOve6K 15X 2011 

93V 85 llceiand V^x *83-88 

136>«' 1151 J Dd.l*1)K Ln.2016 — 

103i)j 94 ^irefim9tix‘91'96 

981? 93 baMn 6% '83-88 


44 

.J 47 I 

J 63V... 

J SS^-H 

SSS 

94 L 


3 (682 

2 I N.26 
£75 j M37 
15J» 10.12 

143011069 

9.75 9.40 


AMERICANS 


19B7 

HV> Low 

«.V 


17* 

1BJ| 
14 A| 

6 * 

61p 

65% 

49iJ 

s 

20 ';. 

261, 

'M 


4^ 

271, 

m 

3ES 

BBU> 

31 

96b) , 

3^ 

Up 

155p 

7b0p 

45p 

29, 

2Sil 

ms 

B31(i 

55vl 

221 , 

12>d 

22V 

591? 

1 

15^ 

48 

a 

iff 

52 

& 

s| 

a* 


Slock 

32VAbbott Labor aionedl..] 

UWAhnunooiH.F.I , 

74VAUMS1 — 

15V*AHeg5rejS WBOLJ 

8'iAmai 11 

17i«(Aindahl 5c. — 

SOH Amer. Cyanamtd 55 
18 Ancr.EiprtuSOJiOJ 
10 Amer. Medical Im SI 



37 ISeii AiunueSL 

21 teiOxthCore— , 

4iJvBeifile«iem Steel SB J 

KPjIBw-RjO Labs, lx ‘A 1 J 

lB'VBatraier Ik 


15 AlBiOMibig- Ferris liZSc _j 
24,- t lBrun5wKk ■■ ■ 


25yCPC Imnl ZSc 
18 tSX Corp U.S41.00 .Jj 
lr^CairedlxSlCO 
37 CamuBrtl Sow 30( _»] 
ZTijICatenuilar >x 5LD0- 
37*P (Cenergy Corp. 25c 
20>r|Ckase MaoMtae S123 J 
York J 

5I3p' CorFedFln.Core 

/Colgate- Palmotive SI J 

812P ptHUruJi-SI 

19i|jCmFieVd"ytS]6a 


283p ICoatl Illinois Corp S1-. 

. MhplCoBi MIimI) Hldgt SI J 
98p wCunxme Dau Son. J 
609c Celliiei 5hw> SOI— 
21 b toamstm Dd 40c 

23,' f iDauCorB.n 

17VD2U General 

12b IvDenro-Lock MeAcal 
67VDun&Bradslre«U— I 

X IllEatcn Corpa SOt 

17VFPL Croup S081 

lQVFalrmem F manual 

15I2FK1 Chicago 15 

40l;jFoni Motor 52 _ 

Z31i|GATX 62 >jc 

39 ICrtLElea. SO A) 

681a MeitralHoaCorpSl J 

32,'ljGWene SI — , 

| 989b tel An Flifl Swb BIJ1 J 
271»fcl Western Fin. $1 _ J 
20 tereylixa()SL50>«_ 

12'jH**ro lx 5030 

llAwneGromSl—^. 

40^lHooeywell S1.50 

21]JHo»iU( Corp Am SI -J 
IffVkoaswn Inds Uidl— 

S I8M Corpn 5L25 

IC hwosuies 

inCwx.U 

Flnogr SuxpgeJRSrsJ 

JlngerolLRand S2- 

jJlnatalSl . 

lOfflli limit. SI J5 

2yJ Lockheed Opcu 51 — I 
197JLow Star lads SI 
19 /JLocimiu Land 5015 -J 
14 lLowe\50c 
22 1) (Marat. Haranr 57l|_l 
14A Merrill Lynch S3 
Ip MMicnKmkiUr Utn*4 
22}| SSdee lx 

24VMBre*>gP)S28 I 

J NYU EX 51 
JPHH 

19Vf»iu<learp 5325 — 
UistPaDfcTetebSOJO 




Wtr 

Gross 

Or 

64c 



68c 

ram 

fl 241 



30c 

— 



20c 

— 

S1.90 


n.« 

etra 

f72e 

— 


— 

W4.7: 

— 



52.00 

— 

— 

— 

- 

_ 

SI 66 



sjy 


S3 5* 

ra- 

saw 

_ 

— - 


80c 

_ 

MOt 

— 

603 

— 

HS1J4 



sue 

— 

60c 



51.« 

ra-o 

50c 


4c 

— 

S2.16 

_ 

52.72 

re— 

SUU 

— 

S2.4t 

— 

40c 

— 

SI 3fe 

— 

— 

— 

B2c 

— 

— 

— 

8c 

— 

— 

— 

— 1 

— 





IL2S 

— 

— 

— 

— 

— 

S256 

— 

SL6C 

_ 

S2J2 

— 



SI.U 


S2M 

rare- 

SI .51 

— 

S1.24 

— 

2?f 

— 

n u 



♦26.7c 

— 

Cl|f 

—W 

SlJfJ 


% 



20c 

— 

S20C 



sod 

— 

S2M 

— 

54 M 


B6c 

_ 

SLOU 

— 



KtU 

— 

S1A 

— 

60c 

— 

SL40 

_ 

H.9( 

— 

Sl-W 

— 

40c 

— 

5328 

_ 

80c 

— 

— — 

— — 

7c 

— 

$2.72 

— 

6S3.-U 



SLOT 

— 

SZ.« 

— 

hSLM 

— 

34c 

-re 

S2.7I 

re- 

sm 

— 

b80c 

_ 

SL6I 

— 

SUb 

-re 

44c 

— . 

SU2 

— 


3.9 
1.7 
64 
68 

U 

16 

L4 

2.9 

38 

28 

LO 

DA 

6.4 

7J 

38 

48 

48 

35 

£b 

338 


15*»b 

Continued on next page 


Schrader Mngt Sendees (Jency) LM 
PC Bm 195. a Keher. Jeraey 053427561 

■Madder Modty (Writ, 

-Sf*ra-— 


£202699 

, 

S34US76 

|r - 

DM59.7BM 



*Fr5762U 

- 

Y4JE3JD 



J- Henry Schrader Wagg ft Co LM 

120 Cheappdr, Loadim EC2 . 01-3826000 

AaitoTtaiiwU 



i I ...1 08 
I .„..] 265 


IIUI 


DC Ut tar UK Cm fenlliisJ 


4.00 

4X2J 

2173 — 

367 — 

12057 


0*5 

L46 

025 

are 


Mat 7. N. D- May Z 
N8. May 29. ttWl- "W W** 


2L “Pncfl May U 




Schroder* Asia Limited 
25tb Flew, 2 Exchange 5a Hopg Kong. 

Awn Fari Bfc.71 t.r 

ComeoaaaadFdlK3l34 74 

Cwrnci B BMP Fd Acc-033* J 

latmwljond 

Scimitar WurfdwMe Selection Fund Limited 
PO Boa 330, Si Hctter. Jency 053434373 


Thornton Itamgemeut Ltd. 

16 RuSbury Oroo, Urahw EC2M 70J 
AnbiHaFaod— _JS2554 268M9I 
f jifrrr fnririfrr WHU8 lUra 

1578^ 
2*. IDW 

Bm 

2X2260 
gjTTt 
15J9S* 
13J770 

288095 

tiJTW 


EuatftnnMTnM S2J5 

ratacMe C a t mne ft- oast 

JaauFww 122.9b 

UtUtOrnsei Fuad El 187 

OnrwallxFiwd™ E22.12 

PacdlciwFdS* E874 

Da US Eqmalm 514 66 

Picillc Tcowdan Fd— . (U74 
PHUmne, Drdnel ft— [2839 

TignFiwa— 

MUU Ramt Fapd 
US Dollar. 


01-256 


»» sasasssrsp Money Market 

— Mfit QlwMmMay 14.JU9J9 M53 _..J 1.4* r*— — I- *A i. 


— Mwcfc- tram MayU - 

— Mow, Far E arl i ra 

— Jinan Fmi ILw 31 

— Paohc F« ' 

— Mercury 
“ £ Managed 

— IUSUmi 

— ESurtwg 

— U5S 


*— -Menc.r)aiHieMa»14 JElloB 33.98 

— Mruts Trim Mm/ — -EUj I3.«a 

- fimgy-^£=^as6i^3 -a-«| 

■m TnH* Ltd 

KS 7Jt 60^ 
j.= — k*5_83 «aii3 
I Trust Ltd . 

79 LL37I 




=d 


■wwoy Drain*- TOW OMlW. *M«04r X*una 

Mioenb, OKs Rea Stan. Fd. tuc- 
POBmm Si Heller. Jency . 0534,27441 

Marcs May 14 ___JH5 J5 liwd I 2D» 

MflttLCurrency land PertMIta 

u r*s 8 M l _J _ 


- SiTSesI 


Ivory & Sum (Gucmey) LM 

K!^!!!! 3 iSr‘W Tj**? 


jartHne Flemhia ft Co. Ltd. 
gpo Bm U44ft turaKwa tmttl _ 

JF Japan TmM- JL** -ftUR — 

jpjapwfroitt— “’S 
JF PkHcSkiYU — 

JF uaehc ncTu .^.TOVS Sore --w 

jFNereftagiTu-— 

JF lasirraTu— — — 5 j*69 *52 

jfoie^Tw - ■ Ot | m TOM 

JF pnMwcrTB 2|2S S n 

JF AaoraUiTivU !?2 

jr Iw-««i«ui Tw fS - .-§1037 }M* 

jfSSS5t«-._ ; &j4 

JS 

jF Panic Oamibr -j UMR 


— FHdM«<HJ*Ba< 


£0*37* 




PS 




Illmlifare a 





Tokyo Pacific Holdings NV 
imum Mwawawot Co NV, Curacao 
NAV per MHd 521612 

Tokyo Pacific HMga (Seaboard) NV 
Intfnu Manage ran Co NV, Curran 
HAV CTT «m 5157.70 

Tgg Brand Fund lutetnatisnl 


587 DntsaGidHcr 

IS SnrFr .... , 

Matin MMare Stcritap Trust 

Glabil Fond _£LU1 UTI -BOOT 

U9 O^smsFwwZ hi IbO L23C ♦0005 

EwOKOiFund W990 uni -A01D 

'Fuad ^ _83»g l.*rn +0011 

__ ww«F»«l___El816 1.074 -0D10 

Pour* FlMI _ tfimj 12B* ♦0 004 

IMKhiKnFwl Esu 1601 -0.012 

Cam FOWL.. » fB.%7 

Utmn S " 

CMUFoed 


EuroeaiFiad. 
JaHnFwW — 
No-lt Amer Fd , 
UwudKlPVbmFd 
Paohc Fa 

AiolirilH 

Hog Kay Fd. 


_ Managers; PO Bm 19ft Si HeVtr, Jersey. 0534 74715 £ES?*ra3TrS » 

- Tra Brmd Fdim HAV J J14.7I I ...I - FSSTivJSff nn 

— In* Ad Moron Warburg Ira Min Lands" ® 


587 


NM lucerne A Berth Fd 
2 Boutemrd RanL 

M*»ai 


*79 


-„J - 


LeepdW Joseph ft Sow (fioemsey) 

Albert Heeie. St Peter Pert, Cennoy 048126648 
Li AS Cwwcyftnd 


- NM Schroder Flu Mgmt lull Ltd 
Bm 273 St Pmw PitrL.SvrreiW 

Hj»a Ceiuo— 

1 Fp« Wrra* — E^57 

_ Don Kang Fund S19.76 

rmMadtonpretF* 

JwwnWyn.---. 


HUM 
15J24 
20JJ7S 
50130 
150862 
40JDD 

80132 
100 430 
100JU8 
25124 
X03OT 
300531 

sr&uLss is 


RpQnchHd Austrafta Asset Mgmt Ltd 

17 Bridge &, Syflxy OTft Aiotra6a 

FHe Attom So. £a —83.79 28*1 

Royal Bank of Canada Fuads 

ROC Ottauwc Food Mampcre Ltd 
PO Bm24b, Si Peur Par. GunBiy 

Mim'd. *12-8* 13 

Iwi Crew Pd __■«*.« * 

Nona AamtcaFri siiJZ JJ. 

FsrUKiPlcircRl SJDM 3311! 

ft.- SJbJb 165U 


Scrimgpour Kemp-See Mngmt, Jersey 

lCmriagCreB.StHebor.JRtinr . 053*73741 

sffiCreoaiFma gao.7 SWTl — J — 

MD t M wra law-— liaan] .._.j U8 

Seoul International Trust 
Fort Mam Korea hwt Tnu« Co LM 
29 UWdosLMe, London EC3. 01-6239833 

HAV Won 20570 95. ID! udm USS2*60OS«. 

Stamm Intcmational Fund— S1CAV 

Z Bralcwd Royal, Lraandiooie 

NAV Ml, a 1 SUMS t -Old — 

Stager ft Fr le d Undu Ldn. Agent* 

22 Ntw5i BbhKmMK, EC2M4HR 01-6233000 

sasuftSEw** J -I L?Q 


SkamHfond 

S 106 *0 Stockholm 8-791-3700 

imtnubarot »c -— — SUP Uj 

J7M 1 


In* Ad Marary Wartiurg Ira Mngi Londgn 

Trmtsworid Baud Tract 

i .....j 

Tyndall Si 


Jmei Xm Fa — . 
Hui Amrrlcw Qpps 
GMulBoWFd 


GMilHaaCwF, 
— Yen GMol Eg Fd. 
Yra I ml Ea Fd _ . 

gen (Jersey) LM Yre SM M Fd 
Owries Use, Claries SlS HeSer, Jersey. 0534 37331/3 



5)66 

20.78 
23.13 

13.78 
2521 
1056 
UL56 
105* 
1WC 
mw 
1052 
1054 
1051 
1054 
ULM 
1051 
105*1 


-001 a*s 

-03* - 

-aac _ 
-0J4 — 

-O.-ri — 


♦ 0.01 

*DD1 

-wa 

-dm 

-002 

- 0.02 

- no? 


oo*i 


_ 000*252891 
6JXK B.40I (kr 


01-606 

ftr. 



Ucon-Pratsl- 
UoMMtn RdJbagtMs, li Ml 
«.I.Giha«J86»og__fll66 
UccureSaarasi — —83*2 

Tyndall Guerdian Mtegt Ltd 
PO Bm 1256, i 
T-Cto 



0*2 Warburg In* Mngmt (lilt of Man) Ltd 
1 Thomas Strrer, Douglas. We el Mao. . 0624 


Mere luMFira l. _g Oaa 


WanOey Fuad Mauagen (Jersey) LM 
UK Bk. Btdg,GrenvlOe Si, Si Heller . 053427364 


fca4 j 23 ”J Demin |3 53 

—J S.4 Jijiirwrri'-. ■ ■ - -J3SC 


: ssoira =j ^ 




MfUMHIl Aa_ 
hKomijbwdFa_ 
Acojii Bsaa ra— 
ForldU— 


-0775 



i* toSss 

tnn tav.TO 







Secrete Generaie Merchant Bank pk: 

60 Grecechmi Si, Lanrai EC3V OGT 01-6264621 

FT* SrcsutlMi Sra _9T»17.1M 17,793! I 

Standard Bank Fund Manager* 

0990 2604B Antony Wag* 


T-B Paata 

Ti Will ~ 

T-GGGM 

Tyndall Interaatimul Assurance Ltd 
Albeit Hrau. St Peier Pon, Guernsey , 0483.27066 
Intrmsuiail EqgMy_-M7.9 72*4 
Do-S. £1500 12-Ual 


taka tmM M—umt ( Gt Hi n xy) WJ 
*0 >10 808. S' Pr4f» PtaL Cuerrarr. Cl 048126268 

M 8 ^ -1*266 

»fw‘ ““ 


053*73933 
1651 . I 13 


KMmrcrt Benoau Grand 

2C Feaetarrti Ji London EX3 


BrawsMe toHWH i limited 
•0 bM78.il UOH. Jtrwr 

ilxM --43) 3* 


&V$S 

S1U7 

m 

uuu 


17361 

-0^ 
L3M (MX 


Meet aeri fy w 

Management Unified _ 
We-, 0834,74248 



ZJ3 

i5 

SJ» 

OJ8 

7.91 


Graf nod IlYWt Manager* (Gwrmsriri^d 
MBo.ek.Ujrrarr.l^p-Jtaw-'^ 

ffiS ^^ dg-pS? lira i - 

Mm**** ***** ^ ’2n Ctoe, S2 r l«o! 

pQBai HB. St ***** Pare itarrfW D*»z»» 


=i ^ 

***** £—« *•- Mrt | ♦bom) 579 


Swn 1 -* . •• ■" — „ 

■M.I wri«*y rmd 

USSHewy 1 


-■ruliJfil-j -'«9.! 



lumn- Hi . *. 

Man* AWTMO*^. rerajo 

rtf 6 *WA( — g«-2 

(.tee) ii'fft * mi mm mM p iCnri 
- v^r-m P dHMMd upw on— - 

i tor immniO n «(•»)* *r mt ft K i 


Pwetyrta uS-Gn WOi- 1 

aBB«Fd*r™oj-- 
Tl MIIT ITTr ir — ♦ 

TrusMumicM Fa.— i 

tSZSGSte 

rmPMtmd- ' J*** 9 

KWrrwnrt Bmrewi , (Budrasey) Fd MmLH 
PO Bo. «L tnra, Cl — 0*81*7113 

ssa^=jS 4 - 

tKIHAA*.8dF0AB. , V r eIS, Jti 
•**4f 4* ,l 0f*“7”- JJ9S UOri ! 

in r-.fr ... . — —.1*1* JVH 

litunnriy-. I **m BAtn ■■ 

*e ci Mg o ~>-— «r 
■ 

Sartof drawn Fd— 

S)c5S«n** 

YcaCriMMyft 
Khtamt Ben*** W«we Fd “■""“J* 

■M^m'wxiii Invest Trait Mgmt C* 
lin raw- Dora smri. 

BaHriwrtflrmmgACa. ■ 1*101-6385650 

NAV woo 18^403* USd-94 

Kmw tatematiaMl TraM 

Fund Maxi Kw lumt, Trart Co LM 

21UKULM UOMU) 01-6239613 

9 tWFriwaJ* M rew U3W%S9>« 

Laxvd GratiW* *5* (Guarcty) Ltd 
P0Bb»27S. S Pjtrr*on.Cu»rtB*g 018121167 

ass^KSU:4? ?s M 

uS«tw»rsrav". Z***.. A® 

~!5 



*99 

1 U » 6 

iFd-„_Jl62 


Royal LKe htti. LM . 

Bridge Mse, Caslftbwn, loM 0624824151 

BaraCaDlMcreFo «LJU6 09»| -- : 

^^fUrrf L *l 5 7*^n =■ 

RDfdurr0il4ng?Fd..ilJW 13*1, 


LanUoaftFd. 

Standard Chartered Off. Money 
PO Bm 122, Si Heber, Jersey 
s«r>ri»(— — — — | i«w 

lift 


— SwlFiW- 



L»SSSfc3i*M9 __. fc 

•Proa Mu 2d. Rim Mug “f 77. D»o rare. 

IMt. WBStmhntar Jersey Fd. Mgr*. Ltd 

&ssaasair m »& 

MSShcS l M i& 

-ZngGf&SL rar » » J ren- 

Cmmty NctWyit Curmcy Fund <r) 

njen 


ftojiJ Lite UK tx> ft — HJ8D l.*W| —I - JsfW rttrra. 

non Ur* 1 *' ft S13W 

R0M| Lire Earn Fo__ 41290 w — 1 — 

RniUh 'tiEMN- SITU UU . — J — 

S5aa r *"- » s isg 3 = ^*f*i 

vena ACoim Pen. 

YRAGtrawFo 

Royal Trust Fund Mngt (Cl) Ltd 
P.0,Ba««a.£i Heher.Jmry. . 053476077 

DeUarkBrawTHTn „ TUK* lldj 1 482 

SS!5WSf=a» ® „ :H 0-5 

HH aw, do a. ■«« «»re 9* *7- 

Royal Trust International Fd. Mngt LMW 
POBm 194, Si Helifr, Jersey 053*27*41 

MM-grow pa| 



Sterflng Offshore Fund Admin. Ltd. 

lHrMamSlfMAfiftraUr. 03(05076548 

Preperty Rnenlaas l£D9S LOO) . _..l — 

Strategic Metals Corp gc Metal Funds 


5 Bar Ray, on Gdo, UMOap W. 
lUruhCFi 

iMeUHSFl 



20*5 

5MJ 

89SS 

2850 

4.765 

5*19 

9 060 
3983 
66M 

12h* 

2-11(1 

2082 

J4S0 

4706 

7.905 

MS 

1A15 

251* 

4210 


m u 


1LE 01-7346102 

in s' — 


VWrtity PriiCap To _J|967 
UMKy im Coen, T« 

jAUrWeyBaaoTH .LJ152t 

Wardlry Olokai Stfe^on 

Aunrmusii Comty no 17 

CanamEgoity — — i-. Jl O lB 
jam Eorav- .— — — - J?.92 


EoBoad kic9aJ6 

JUMPtwYe* Bead [wra 

LimiMBam 

tew Franc Sood _ 

US Dsn Ur ta« -J9 03 

Sura llrarv HUM _k.79 
US Dollar Moray tut _JT57 


■» Ward ley Investment Services Ltd 

II JR Fkra. Huutifwa Hpu», Nww Kong 00110044 999. |7*fl 

— WestAvon Secs. (Guernsey) Ltd 

— Boraugn Hie. St Peter Port. Gaemtey- 

— USSOpdan B1 J8 1.14 

■” **V >vofTia — .Itoaa 02 

-» InuniaSKaiAl GnaatB-^JUKS OK 

— JitraFHM — juimb a73 

— World Bond Fuad 

— Uanagerc PO Bm 19ft St HeSer, Jency 0E34 7* 

— W*MBlMdFmdUAV.J £172k I I 

— Ira Ad Hcro-v M-twt ttw HoymnL Liinow 

Z World Capital Growth Fund 

— Managers: PO Baa 190, Si Hrtlet. Jersey. 0534 T- 

— WMdCaoGat)irMaini> J sum I I 

— ui Aa> Mrnuay HUrBwv M* Ungi Lonran 


ue ere a n i ui dm*. 


:7SMI 
J 0*2 

umv 




ijugrflCur f^FdOTfr ------ -m- 

ises&mB.asir 

issi^gr^-SM 

2 i 5 a 

UiHdSre (^<ai 


a 

# 

UI 

(in 

DM 

oar 

cun 

15 


Newport MomaUonal Management 
Baibol Betmda BMa Bcnradl B092954000 

SiaS^ n I =A = 

Ttag Mew ZAalwad Fund 
Hunger. LaMoafea* QSrian Lid PD 
SoTL CMIseaar cinwt, Road Tuna, WVwW. 
EArHgOOrtFragrigACa Ql-«aRSKB 

StaUZFaad . ■ .Bill U.«7< I 06 

HfldM Inti. Cap. Mngt. Co (Europe) Ud 
eraPOBmlOS.Gaerewja (W1Z1438 

zxssoadn ^ -J - 


-ud - 


Royal Trust North American Band Fd 
43 Bodenud RgreL L um noac-o 
NAV USS923 


SCLTECH SA 

2 Boulevard Royal 

seirtedituv— — - 


Sabre Future* Fund Ltd 
c/o IS Caam SL Loaaaa EC4 
HAV Mar I -3774 


NuHiuia Brewth Fund SA 
2 tauiMro RoyaL Lmatraou-* 

OVY Wy20—^_, MqWa -4 

NiflMM PradentW Gtohal Portfolio 
J Sorarerd fetrsl 4T5U , , ... 

■ AV Hay 20— '51276 • — • — 

Northgate IMt T*L Mngr. (Janay) Ud 
POBmd£S(Mrkrr. >m . 053473741 

PacdafradUhL J*84 4«J3l • - 


Sure ft Prosper International 
pq foe 73, St Metier, Janey 

SSS^5&’=t-2»«4 iiM 

DQr.fad. '— rati _9U*i 

JaoaaucAbre* -«3J1 

SiFho — 3759 

tradr Farai 

Unaa 

FwLKnd ara.SS 

bum r*t!a»(el_. -***». 

Ciao*i PatrtaLiFaji— S). a 
Bald . ,S2s-37 

jw jjj;; 

XAramar SSSi- 

UFtearfi 

kiiaaies taw 'ai*A V-— 

-nUigyFd — — - -316 93 
IMDCantm Bntne Fuad , 

~ awi&ib ie» 
IS'tr:**— — -!J0 

»ra - 


StrosshoM Imreftraeat Mngrg Ltd. 

OS Atfiol Snei, Dgogias. loM , 062420845 

5n»4im>A*GcaFd-it&bO U>J*& .... — 

feoagnodPiwft—FlMJJ 1D04S -. ■ I - 

Man ir^i-, am Hay joi > 

TSB Trait Funds (Cl) 

26 Hdi St, Si Heher, Jency ICO 

TH (Lit Funtf Ud —JlOS D 

TsaOiiirdUBiLu! ilooo 

T5S JiyEra-aWHi ~|«4 

TSE CMaunFsali Ml 

TSSChnrenFwMi llOlS IUb J . 

TSB Hiau hirerea 1 123.9 IM* ... 

Prut M Hi) 30. MM <ab Ur MW 27. 

mirintt Taipai Fund 

, nj _ On Piudereui-Badie Carrtal Finding (CoatlMl LnL 

““ 9 Devonshire So, UMM, EC2H4HP 016232410 

NAV NTH SOZUniHI, IDR U&H4.44 (Hi) ZU 


S1TJS I — 



*«g 

26Kf 
157 fi 


M. CL Tyrrell ft Co. Ltd 

3 Wignorg Place. London, W1 

Mat Sl*.9S 15-351 — J — 

US Federal Securities Fund SA 

2 Boulnanl Rayal, Luacifdawg Tft; 47911 

HAV Uir 20 1 SOB* I .....I — 

US Index Fund— SICA V 

lb BerievM Royal, LuarndMwa , Tel: *62384 

HAV Mil IB I 1UJB i — 1 — 


World Fond 5JL 
2 Boulevard Hoyal LuamdiiMre 
Wortfl Fund NAV 1 52333 


IIS Pacific Stock. Fund 

15 Avenue trade Reuter, Loarmbocrg 
NAV Uir 20 — J S17.00 1 

Ui- Treasury Securities Fund Ltd 
PO Beg *8, Si P«er Pon, Gumnay. 

5a»rt Tatm Siy ri— j *97l.fl 


I - 


World Wide Grawtta Management^ 

Ida, Boulevard Royal. Lweinboure 

WandMr Gdi Fd — J U4AL I . - I — 

iw. av»j am ira. Max. Ln; umbo 

YamalcM Capital Mngt (Guernsey) Ltd 
22 Smith SL S< Peter part, Guemwy. 04B1 23763 
JadiB Hea Craath-, 1 *1335 I i£L(J7l — 

VamaicU Dyuandc Mngt Cn SA 
IDA BoUcaard Royal Laaedhanrg 
AaravedTrea — ^__J 2SJ J 

OynwGailiFd J 527 J9 I 

Zero Baud Fund Limited 
pfi Boa 20ft Sl Pater Pai. Gonmey 
ZamBmePme JS1L97 12 aN 


Filed In 


S099D7 


OSH 739X5 


■3X01 



Taiwan (ROC) Fund 

Jiriianda Com Ud. H"9 Wtauan Si Lome EC4 
01-623 2*94 

HAV 5865. I OR vahia IISS2S.9213S. 

Target Internal. Management (Jersey) Ltd 
PO Bca 4*3, Si Heiier. Jane). 0534.75141 

hMrroonn Box: Tu —laiJS 139Dd -OJSJ — 

MrySrrawFiM 01209 22471 - J OJS 

Target laUriutiunaJ Mngt Ltd 

174-277 High M 91 sera Uyidpn WC1V 7AA 01 -836 B090 

uaiCnratSfa i W* J -MR - 

HnoMoi Proa ft C9M lD2n ■ < — 

The Thailand Fuad 

l*d Wn or Cooi Ud, King Wilbaai Svbm. Lawiaa. 
EC4HUR 01*23 2194 

HAV Biil *320.114 74. ID* »W USS 12756. M 


Ulrica Invest Fd Mgt Co SA Lux 
London A Continental Bankers Ltd 
2 Throgmorton An, London 01-6336111 

UWceianSLFwd DH7ZJ0 742(3 ! — 

UnJBle Assurance (Overseas) Ltd 
PJ2 Bm 138ft HaraVtoa 5-32, Bermuda 
5rang«»aft__ — ilJl 138! 

U5DDU>iUnFd 5L«0 l.*B 

Slartao F.red lat Fi tUQ 1J7 

USXiimF.aMlatFd— {S13J 1LB3 -0J3J1 

CCUBrauFo — |IaJl» lja 

Batmen Efcrawei ft- Sun 2 12 «DDI| 

DnsnCMPrckSfa— £ lD0 1.06 

Ldli JiMtnii Sug I^Ofl-1— 127! 

Uraon-Investmafit-^eutHchart GmbH 
POHfiCh 16707. D bOOO FraiAtaR 16 

UHhrax | DIAMTS 30.M 

PMnCwaFal)ay7 .J,DU7elb BODJ 4l«q 

Uuraali 'DM3788 3820 41201 

Vlkteg Fund— SICA V 
20. BOoleura Emnawyl SenrBv luienaan 
hav Uir 12 Era lOjOb 


l J “= Money Market 
Trust Funds 


Charities AM Fmftn Money Mngmt Co Ud 
Straw Mall, Stone Cl. HounOiOttch. EC3 Ol-ZS^bAM 


CAFCASrt CHI Fuad. _J7 85 
CARCASH 7-<Uy Fand— JUB 

The Charities Deposit Fund 
2 Fore Sum, LwBhai EC ‘Z* AM 

Dcpow a.*s 


“ Bank Accounts 

BrCoriv 

iID ANZ Fhxnce High ifet 
na Mainua Hje, Mdotwiii-OL Loadon, SE1 01-3732576 

_ onl 9j3 £ 

— Adam ft Co. Die 

- 22 ClurtgRe Sa EdhrtKpft EH2 4DF ,031-2258484 

— Ful&enuCwAci JlBJO fcOOl &M I Qv 

— Aithcn Hume 

- 30 City Poad, EC1Y 2AY. 01-6386070 

— TrcjwryAa — -*JS 6J1| BJTJ Otr 

UIMUEM CKOM5030 _fe00 6A9 8.^ HU 

— MU Im.DiQ. 15.000 +J8J5 bill ATS Mia 

- AAB — Allied Arab Bank Ltd 

- 97-101 Cannon 5i Lurid", EC4N 5AD , 01-6262046. 

- HICA.HICMA XOO 7J4I KLW Mm 

— Bank of Scotland 

- 38 Ihreadneedlf Si EC2P 2EK. . 01 
•tag HklChcwa Ajee.JB. 20 
Barclays Prime Account 
PO Bm 125. Nortiwiinon 

H« 11 Cftnaic 7275 

Benchmark Trust Ltd Prcmtar Account 
«> Hmrtflu Place. W1M9AG. . 016313313 

U.OOO-1 10DOQ „J9 x 6.77! 4 (miom 

□0.001-C20.000 1925 fa wi 9.7g Mini 

£20000+..,. 1950 7,15 9.9? oanfa 

Brown Shipley ft Co Ltd 
F unman Court, Lomunry. London EC2R THE 
9833 

DmuMAic has ozil awl 

CharterhouM Bank United 
1 Paternoster Row. EC AM 7DH- , 01-248 4000 

Slrhiao— 1 153 faAffl 9Dq lltt 

U S Mlw 033 Ou HU, 

Herron Uarhs l&SO 2*2 3*d HtO 

2*3 IS HD 

Citibank Savings 

St Marian Hie, HammervnHO Gnat Wfa OJP 

01-741 4941 

1 “ uJ tS m 

5-56 Cooperative Bank Ctieguc & Save 
76-80 Cdratiill EC3 01-626 6543 

— WXhU.500 531 4 COl 1561 Otr 

“ £2300 ♦ 7J1 SL50I 76* Otr 

— Dartington ft Co Ltd 

— Danatgion, Tetats. Deign TQ96JE 06t*3 062271 
— KaeiUHlB HOOD 6.771 9Al! (far 

— Henderson/Bank of Scotland 

- 38 Threunndlr Sl EC2P 2EH , 01-6288060 

— Hsner Wtt- Ewn Act &I0 6JJ9) B59i Htfa 

— Legal ft General (Money Mngra) Ltd 

- 355 E ultra Rmd, NHfl 3AE 01-3883211 

— H^aini On Au_. -6.472 637S &S71I fayatfa 

- Lloyds Bank PLC 

71 Lomoarf St Lon don EC3P 3BS 01626 1500 

LLOOKA.OX 1o» 350) 7Afl| (far 

LSjjao-ti.W .7 00 saoj aia ®r 

Otr 

oji (far 

M ft E/KIr Inwort Bencun 

U S H Hie., Vhwrto Rd . Chefamford 024S 266266 

H I ULl£i500*i_- -8M tOTt B471 Dray 

Midland Bank pic 

PO Ekn 2. ShellirW. 0742 50655 

Hra i«it Ciai Ate 7 47 60H 0.41 (far 

£20.000 4 . IHJB.24 6JO 85*1 On- 

M.I.M. Britannia Ltd 

74-70 Fantrary Pavemeni. EC2A UD , 01-5882777 

On Alim J&2S 62081 1 8 750*1 — 

NatWest Special Reserve Account 

41 LotMrary. London, EC2P 2 BP 01-726 1000 

C2JX»1»C4.49» flip falls’ 8J« (far 

110 OOC and aactvr . ..t 125 faS OSbl {far 

Oppenheimer Money Mgnmt Ltd 
66 Canon Si, EC4M 6AE 01-2361425 

Uoorv Magi Am 77* ILSS _ I3-Mm 

Phiifips ft Drew Trust Ltd 
120 Mfaorgate, London EC2M bXP 01-6289771 

High lat Cnq Act J7d75 5.91) 8J0 Or 

Provincial Trust 

30 Avdey Rd. AhrmcfaJin. Cheshire . Obl-928 «0U 

H.I.CJLUX09On »J0 70S! 1CU23 Mia 

Royal Bank of Scotland pk 

42 St Andrew So, Edm9ur*h EM2 2YE. .031-5570201 

Pterakan Acrajid ,7 07 592) BJ9J Otr 

Save & Prosper'Hobert Fleming 
28 Ufegteni Pd. Ranriord RIA1 3LB. 0708 66966 

MI0J.. 7 64 17SI Bail Dray 

Tyndall ft Co 

29-33 Pnnceii victoria Si. Bntul 0272 732241 

DanuniAor la 07 hurt BSlI Drr 

Morey Ate a 19 faU Bitf (far 

Ctarc Pun Act CL DO fa IP 5.4)1 (far 

04B126268 j. Henry Schrader Wagg ft Co Ltd 

“■ Eniemrne Noma. Parumaoth 0705 327733 

aas/2=rz=jiE s.-?a ssa ss 

Western Tract ft Saving* Limited 

The Moneyormre, Plymsoth PL 1SE 0752 Z24U1 

Riga Create „-85fa 644! gjfaU (far 

Wimbled on ft South West Finance Co Ltd 
5r Eouhi 11A Newgate Si, Lowtoi EC1A 7AE. 01-6069485 

CAB iw Cr Hub im CaroreAu UODO 7331 10 oil to 

NOTES— Gnu- fair to dioie rvonpt From carapatire me a# 
lu Hrt: acuta ratr K'rf ordudnn M CRT 6- Eon CAR: 

Grou roraoure raaiut race uvui)«f*--c9egHaiadN raraol 

rale, la* Cr liraaracy neieu crMied 


« J - 


"J Z 


1 Jiata 


01-5B8 1815 
8.721 >W 


The Money Market Tract 
63 Oa Victoria Si. EC4N 45T. 

Co9F«(.__ t |JS 

— TuarFad^ 6 15 

— Oppenheimer Money Management Ltd 


6fa unreal Si. EC4N 6AE. 


7-4*1 F liT- 
Doiii >6 .Ml 


H3 


2*11 


j .;i aid 


UNIT TRUST NOTES 

Price) are u pence unlru nlinwe ndiuled and Lhasa 
ovugnain S am sa sietn irier is U.S. Milan. Yirm 
•a i Worn ai I »ct uiuraai aliaie to all buying eipeatec. 

Prices of icruia tuner insurance inked nun Uitoct id 
cranai gjira ui on talc*, a Offered ortcet include in 
eipjnwi 0 Tmuvi Drreei c Virtfl loM dtoTIw pnc*. 

d Ew. mated * TaaiVj w*rtng once 0 Dttnbuiian 
Iw ol UK LUp*. p Prrtswc prenratni iru rarer plfan. 

* Single n ram. urn imairance a OHarrd Mice vtckoin M 
evpefees e>U01 agews ummHuiOiL. j OflerX pree 
nduan ill ripen*** ■( Bougie umuga nmupen. 

* P»e*i«iiOi,'iprrft • Guermty gryii, a Sndfndrd. 

B 52' b-utt, * T'rte sefore Jenet tu t Ea-unraaiUGii. U Only 
S 7B- fa-F4ra i*i'lib(e la Out'-tablr bod* 1 - * V.rla cftlwim ihmL 
JemiJl/ten iwiet at MV mertase. at e< dnajrad 


01-2360952 
BJ7] tndi 
Bjli emu 


01 236 1425 
e^Ma-Uto 














































































































































































73 

» 

89 
72 
04 
199 
88 
«9 
220 
1021 
*97 
151 
U3 
209 
177 92 

*215 165 

430 ZUt 
215 US 
77ij 63 
17 8 

to SO 
227 119 
Mllj « 
175 78 

91 54 

UK 89 
443 511 
203 148 
166 114 
162 127 

S O 
53 

487 361 
107 50 

191 142 
228 U3 
131 76 

126 97 

595 340 
19> 

51 
323 
95 
404 
**54 
88 
5«0 
122 
145 
SSL 
170 
179 
255 
52 
25 
403 
259 





90 M 
450 295 
400 188 
635 495 
248 90 

180 155 
235 133 
341 228 
105 62 

440 413 
371 270 
82 40 

48 
185 


m 

190 
200 
143 
231 
□.47 
173 Ub 
205 98 

88 52 

ZU 172 
286 215 
116 79 

180 56 

325 192 
315 200 
93 78 

374 246 

443 96 

995 400 


29 ti zil 
24 25117.6 
32 U 1212 
L4 3.9 
52 0J 
46 12 
4.9 06 
12 2.7 
KJl- 

06 to- 
ol 211- 
20 26 
36 15 
2 A 0.7 
1.4 3.7 
Zi 32 


' 1987 
Hgh Lo* 

158 113 
97 63> 

466 304 

■ZU 143 
297 246 

71 47 

180 143 
Z17 65 

IBS 118 
105 Ml 
185 111 
200 B3 

189 138 

55 37 

190 113 

170 120 

220. 116 

72 54 

290 175 

295 203 
375 206 

200 141 

165 143 

137 102 
295 113 

28*3 11 

99 42 

170 121 

77 43 

86 » 
168 131 
143 109 

132 127 
UO 67 
54*3 32> 
540 290 
157 133 

470 238 
136 102* 

337 236 

Z7Z 210 



GriiiHE 
50 fata 
6.4 24 2 
20 136 
25 1L7 

2.9 161 
10 4 > 
2J UU 
3.7 — 

36 L2 271 

• 5.4 * 
2.9 4.4 J05 

23 170 
132 

25 172 

26 28.9 

27 142 

6.4 « 
L4 14 1 
26 1X8 

24 175 
DO 116 

1.4 100 
66 132 

3.9 162 

- 75 
JO 17.7 

« 41 « 

6 40 6 
21 14 18.4 
13 51 17 
46 25 10.9 
21 4.9 114 

* 3.4 6 

26 - 
26 55 107 
51 12 220 
20 40 122 
13 18 — 
6 41 « 

— • 



TOBACCOS 

zk I Price M M 





TRUSTS, 
FINANCE, LAND 






♦ 19 
25 10 
17 15 
25 25 
51 U 

♦ 41 
15 45 
32 W 
32 23 
10 25 
30 15 302 
2.7 40 205 

BUHia 

43 £7 IU I 317 





79 
303 M 
133 P2 
259 M . 
►S3 1 
-3 




164 129 

£10 865 
235 181 

77 66< 

575 363 
158 138 
155 139 
488 377 
183 143 
303 175 
127b 10B 
130 110 
143 UK 
417 374 

67 57 

84 64 

83 69 

300 267 

78 60 
77b 641 

fllABUB 
46b 38 
558 478 

126 105 

392 277 
130 DO- 
226 226 
£0 09* 

233 135 
02b 950 
55 42 

125 105 
86 70 

51 42* 

Qlb 995 
76 56 

192 140 
100 59 

99 52 

136 119 
70 51 

853 780 
159*JlU 
80 71 

ZBb 18 
168 143 
201 133 
470 375 
229 203 
128 113 
794 663 
287 07 

127 I 


518 425 
530 400 
£42*j £401 
226 174 
191 108 
12* UK 
82 74 

80 72 
4U 315 
775 533 
234 228 
156 129 

29 24 

310 282 

267 228 
465 455 
16b 125 
440 342 
60 55 

14 U 
UO 136 
055 039 
234 200 

461 30 
1Mb 148 

204 143 
208 147 
196 ID 

186 U5> 

191 160 

171 155 
128b 109> 
87 67 

12 H 

52 45* 
589 455 
120 100 

53 37 
ZU Ub 
284 223 
173 148 
402 380 
US 145 

58 52 

U 10* 

386 328 

294 04 

325 243 
10 100 

54 43 

187 149 

185 ITS 
168b 328) 
170 145 
288 253 

336 269 
450 416 

450 290 

32 28 

249 04 

98 67 

284 218 

105b W 
220 155 

205 176 

368 285 
£37 £31 

£28 £24 

69b 63* 
20b 15> 
EUfib £96* 
433 335 

188 136 

85 74) 

49bl 36 

387 298 

Ml 110 
195 159 
165 148 

525 310 
07b) 02* 
105 0 

329 260 

44 32 

280 234 

286 209 

230 187 

75 57 

49 30* 

190 145 
413 376 
Q4A 994 

191 UO 

326 2U 
348 280 
178 156 

B6 76 
152 120 

92 TS 
56 50 

250 212 
25* 236 
560 <22 

58 50 

202 164 
191 163 
194 178 

189 178 
202 189 
199 W 
25* 2Z3 
588 >491 

73 64 

81 > 63 
US > 60*. 

85 3< 

DJ 135*. 
72 56 

407 



Ob YU 
Nit ICirlSrb 


76 12 20 
UU U 82 

110% U 19 
s06 22 0.7 
♦025] - 02 
04|Z2 OJ 
02 12 05 
UU 24 
FLE LO 26 
U L6 05 

123 U 42 
«% - f5.7 
06 0.9 16 
I7X • 42 
249 LO 27 

tsdu 20 

9065 12 U 


34 Wtt.P»i.£l 
37tyl Premier Cara. 
365 I 26S f 
£78b £64 
303 |U7 1 
19 j 
125 
985 I 


- Bb 5 

- 4 r 0 

- 55 % 

- UB 39 

- 116 45 

6 147 S3 

- 34 5 

- 61 37 

- 66 32 

- M 29 

- 96 37 

- 7BB 333 


20 46 
« 931 — 
16 32 236 
'29 






L2llA IJ08f 
1614.4 193 
♦ 153 ♦ 


36 15 
26 I 25 
23 
17 
20 

3.7 | 138 1111 IUiu Group 








12 3.9 
U 32 
• 13 

3 16 16 
16 06 
12 08 
12 U 
LO BO 
* 05 
2201 LO 3J 


615910 16 
Q7W — ELI 
569 10 30 

J 16 27 
LO 0.9 
LD L7 
12 06 
10 2J 
Kill 06 16 
FD6l 06 0.4 
LS 4> 13 
llffl LO 16 
50 U 92 


026d 13 U 

£3 U 16 


DO! 10 4J 

♦22] * 10 


16367) LI 30 
3012 26 
23^ ♦ U 
30U 15 
20(13 06 
469 20 15 

1 50J* |2P 


0725 10 33 
9612 10 06 
U26lU 42 


285 
UU 
12 
233 
40 
195 
D5 
153 
08 
263 
267 
<1 

89 
44 

780 
123 
201 
375 
293 

90 
963 

185 1106 
•93 76 

230 189 
650 550 
M 48 
18b 156 
300 1 153 
118 | 90 
*53 36 

60 I 38 
38 I 21 


Oh YV 
Net lewifirt 


32 349 

-.5 * 

15 30 296 
« 127 • 

' 13 1 73 
36 1130 

all 


I lnd.Rn.4ln».Cp._ 85 

loti City HUgt 207 

lBLIm.T 1 t.j 9 .a_ 550 

InwamemCo. 64 

IWrytSiMtUn-J 172 

^Johnson Fry lOp I 275 

hcatan* K5f- I 113 

KellockTna lp 45 

iKoMilOp— _J 55 
iLflfln&AjsInv 


I I 

g \ 115)26 24 223 

9.0 16 60 1129 

J QlOO 03 16 — 

tdU.7 5.4 25 102 

I 14.751 U 36 (20.9 

1-5 I 13.72) 31 1 L9 1242 

| |kOU7bd 20 1 4.4 111.4 

L Oil 53 03 84.4 

U-7 I 16l 24 I 35 116.4 

53 1 15 1253 




j rr^E 

i 


1 






NOTES 


Unless otherwise indicated, prices end net dividends are In pence and 
denomnatims are 25 p. Estimated price'eamin® mtoc and cmen are 
based on latest annual reports and accounts and. where possible, are 
updated on half-yearly figures. P/Es are catcutaied on "net" distribution 
basis, earn mgs per share being computed an profit after taxation and 
unrelieved ACT where applicable; bracketed Homes Indicate 10 per 
cent or mare difference it calculated on *7111" distribution. Cows are 
based on "maximum" distribution; Uiis compares gross dividend costs to 
profit after taxation, excluding exceptional prafltsflotses hit including 
estimated extent of offsettabie ACT. Yields are based on middle prices, 
are gras, adjusted to ACT of 27 per cent and allow tar value of deebrerf 
dl sir Hutton and rights. 

• 'Tap Slock". 

* Highs and Lows marked thusbave been adjusted 10 allow forritfas 
Issues for cam. 

t Interim since increased or resorted, 
t Interim since reduced, passed or deferred. 

& Tax-free to non-residefits on apolieaiica 

♦ Figures or report awaited. 

V Not officially UK listed; dealings permitted under Ride 535141 lal. 

* USM; not listed on Stock Exchange and company net subjected 10 
same degree of regulation as listed securities. 

XI Dealt lo under Rule 535(3). 
d Pnc« at time of suspension. 

1 Indicated dividend after pending scrip and/or rights issue cover 
relates to previous dividend or foreosL 

♦ Merger bid w reorganisation In pragress- 

♦ Not comparable. 

t Same interim; reduced final and/or reduced earnings Indicated, 
f Forecast dividend; cover on earnings updated by latest interim 
statement. 

1 Cover allows for conversion of shares not now ranking for dhidends 
or ranking only for restricted dividend. 

2 Cover does not allow for shares which may also rank for dhddend at 
a future tine. No P/E ratio usually provided. 

II No par value. 

B-Fr. Belgian Francs. Fr. French Francs. 99 Yield based on anumptlofl 
Treasury Bill Rate stays unchanged until maturity of slock, a Annualised 
dividend, b Fibres based on prospectus m other offer estimate, 
c Cents, d Dividend rate paid or payable 00 part of capital, cover based 
on dividend on full capital . r Redemption yield, f Flat yield, g Assumed 
dividend and yield, h Assumed CBvktenO and yield after strip Issue. 
J Payment from capital sources, k Kenya, m Interim higher dun 
previous tout, n Rights Issue pending, q Earning* based oa preliminary 
figures. ■ Dividend and yield exclude a special payment, t Indicated 
dividend; caver relate; in previous divide «£ WE ratio based an latest 
annual earnings, u Forecast or estimated annualised dividend rata, 
cover based on previous year's earnings, e Subject to local tax. 
a Dividend cover In excess of 100 times, y Dividend and yield based on 
merger terms, z Dividend and yield indude a special payment; Cover 
Does not apply to special payment. A Net tUvMena and yield. 
8 Preference dividend passed or deferred. C Canadian. E Minimum 
tender price. F Dividend and yield based on prospectus or outer official 
esUmates for 1986-87. G Assumed dividend and yield after pemflng 
scrip and/or rights issue. H Dividend and yield Based on prospectus or 
other official estimates for 198b. K Dividend and yield based on 
prospectus or other official estimates. lor 1987-88. L Estimated 
annualised dividend, cover and p/e based on latest annual earnings. 
M Dividend and yield Based on urosoectus or other official estimates lor 
1985-86. N Dividend and yield based on pros Deans or other official 
estimates for 1987. P Figures based on orospectas or other official 
estimates for 1987. fl Gross. R Forecast annua/ is ed dividend, cover and 
0 1* based on prospectus or other official estimates. T Figures assumed. 
W Pro lortna figures. 2 Dividend total in date. 

Abbreviations: ui ex tfiwtand; a ex scrip Issue; u ex rights; a ex ail; 
4 ex capital diarRMioiL 


REGIONAL & IRISH STOCKS 

The tm lowing Is a selection of eegipnti ana Irish slocks, the latter being 
orntM vi iron currency. 

Albany Inv 20o I TBdl I Fin. 13% 974C 1 01O*il 1 


Craig & Rose0 _ 
FmByPkg.5? 

HoHUoyZSp 

IbMSIitlO 

IRISI 

Fund IU.% 1988- 
NaL9W>B4/B9_ 


Oft I Artiotts 

86di CPI Hldgt „ 




Corral Inas. 

Dublin Gas....... 

HaH l(LAHJ_ 
HenonHBgs., 

Irish Ropes-™. 

Umoare 


34W -5 

58 

131 *1 

18 

100 +2 
30 +1 

165 

368 -35 






















































































































































48 


Financial Times Friday May 22 1987 


LONDON STOCK EXCHANGE 


Account Dealing Dates 

_ Option 

Pmt Declare- Last Account 
•KBUttSB turns D ealin gs Day 

HiyH May 28 Hay 29 Jnn 8 

» A i™ 11 inu 12 Jnn« 

Jon 15 Jon 25 Jnn 26 July 6 

r««w M?" **■*•"«» Ml taka ptaca 

The UK stock market took a 
ntrther tumble yesterday alter the 
latest UK opinion poll surveys 
undermined an attempt by Lon- 
don to follow Wall Street's recov- 
ery from the shock administered 
by Citicorp's decision on its inter- 
national loans. Although selling 
was not heavy, the market was 20 
FT-SE points down at mid-session 
and returned to its lowest levels at 
the close despite firmness in New 
York. 

The FT-SE 100 index ended a 
farther 20.3 down at 2153.7. mak- 
ing a net loss of 60.6 over the past 
two sessions. At 1677.7, the FT 
Ordinary index shed 13.1. 

There was renewed UK selling 
of bank shares and the whole of 
the financial sector remained 
very nervous of the implications 
of Citicorp’s move on its loan port- 
folio. 

But overall the picture was less 
gloomy than market indices sug- 
gested. Major industrials were 
mostly lower but the SEAQ ticker 
disclosed that much of the selling 
was small. Securities houses were 
winding down positions ahead of 
the extended Bank Holiday 
weekend. 

This week's shakeout was 
regarded as fundamentally heal- 
thy. “We have unwound some 
overwrought positions very nicely 
over the past two days” com- 
mented one leading marketmaker. 

Market attention again focussed 
on Ralls- Boyce which had another 
active session, featured by 
Japanese buying of the small 
share lots offered by UK holders. 
Glaxo, a long-standing favourite 
with Japanese investors, moved 
up against the trend, and con- 
sumer shares recouped some of 
Wednesday's loss. 

Shares opened higher but were 
soon taken lower by the response 
to three public opinion polls 
which Indicated a narrowing in 
the Thatcher Government's lead 
as UK voters prepare for the gene- 
ral election to be held early next 
month. 

After sliding lower, the market 
steadied ahead of Wall Street's 
opening. But the initial firmness 
in New York was shrugged off by 
UK investors who returned as sel- 
lers towards London's close. 

Shell and Jaguar were virtually 
alone among the US-influenced 
stocks to end firmer. Imperial 
Chemical Industries, Lloyds Bank. 
Unilever and RTZ ail showed sig- 
nificant losses. 

Gilt-edged enjoyed a calm trad- 
ing session, helped by firmness in 
US bond prices. After moving 
within a tight range, prices closed 
mixed, with the long dates firmer 
by Vi or so and the earlier dates 
little changed. 

Turnover in Gilts was light, and 
the sector continued to brush off 
the Citicorp loan moves. While 


hopes of another base rate cut 
have now been postponed until 
after Election Day. the sector 
remains confident that UK rates 
can move lower during the 
summer. 

British Aerospace met with 
farther heavy selling (some 9.5m 
shares changed hands) and Tell 
away to close 18 down at 612 p, a 
two day loss of 40. The reaction 
took place after an aviation maga- 
zine suggested that the $&5bo AV- 
8B Harrier programme with the 
US Marines may be In serious 
trouble fallowing vulnerability 
tests carried out by the American 
Navy. 

Weakness in British Aerospace 
was also prompted by market talk 
that a Norwegian airline had 
opted in favour of buying new air-, 
craft from Boeing. 

The implication of Citicorp's 
decision to Increase its loan loss 
reserve by some $3bn continued to 
reverberate around the big four 
clearing banks. An early attempt 
at a recovery quickly gave way 
under the pressure of persistent 
selling pressure from nervous UK 
holders and share prices dipped 
sharply to close at or around the 
day’s lows. On a more positive 
note, however, dealers said that 
there was little or no selling 
pressure evident from recent US 
and other overseas buyers. US 
houses, they said, were net buyers 
of UK banks. Midland dropped 24 
more to 633p mirroring the bank's 
substantial overseas debts, while 
Lloyds, second in the table of over- 
seas loans, fell 20 to 523p Barclays 
settled L6 easier at 543p and Nat- 
West. with the least exposure to 
overseas loans and the UK’s most 
profitable clearing bank, were 12 
off on balance at 673p. 

Insurances included an outstan- 
ding feature in C. E. Heath, the 
broker, which spurted 33 to 498p 
on the view that the sharply lower 
preliminary profits had been 
widely discounted. 

Rolls-Royce, in the wake of 
Wednesday's highly successful 
market debut and farther heavy 
trading overnight. advanced 
strongly to 154p on reports of 
further Japanese buying— they 
appear to be well on their way to 
reaching their 15 per cent quota- 
before easing on profit-taking to 
close 2 lower on the day at 145p: 
157m shares were traded 
yesterday. 

Specialist chemical manu- 
facturers and services group Che- 
moxy did well in first-time deal- 
ings; the shares opened at 210p 
and moved up to 225p against a 
placing price of 185p. Practical 
Investments, placed at 83p, 
opened at 88p and moved up to 
95p. while USM newcomer GC 
Flooring and Furnishings touched 
99p prior to closing at 82p com- 
pared with a placing price of 76pi 

The general market uncertainty 
continued to stifle the response of 
leading Breweries to good profits 
statements. All three majors 
reporting this week lost fresh 


Further losses in nervous equity sector but 
Gilts hold steady in thin trading 


Business dropped off |n the 
Traded Options market after 
Wednesdays record turnover. 
Contracts totalled fiWSSnada up 
of 40.214 calls and 28.081 pufa 
Rolls-Royce attracted 7.337 calls 
the recent good advance iu Ocean and 2,435 puts. Sears, nimou«o» 
Transport and the close was 9 be considering a bid ** r LQ ™‘ 


FINANCIAL TIMES STOCK INDICES 






May 

18 

May 

15 

Year 

aw 

1987. 

Since Convilnten 


21 

20 

19 

High 

Low 

High 

Lorn 


92JB 

92.43 

92.43 

9232 

9282 

9235 

9332 

84.49 

1278 

49.18 





C 8 ® 

16/11 

(9/1/35) 

anna 


9737 

97.73 

97.77 

9782 

9887 

9739 

9834 

9083 

105.4 

5053 





0315) 

( 2 / 1 ) 

(28/11/47) 

13/1/75) 


16773 

16908 

17198 

1696.4 

13918 

13163 

1.7198 

13202 

1.719.0 

49.4 


4443 

U9I5) 
485 8 
0414) 

( 20 ) 

7S& ■» 

095/87) 

734.7 

<i5%«a 

(26/6/40) 

433 

(26/10/71) 



4398 

4333 

429.9 





Old. DN.VMd 

3.42 

3.40 

335 

3.40 

339 

439 


S.E. ACTIVITY 


Eamhtgs VM.%(faff> 

nvn 

881 

889 

8 . 1 S 

n m 

1037 

ladtees 

May 20 

May 19 


P/E Ratio (net) (•) 

1487 

14.99 

1581 

1585 

1584 

1L79 

GIU Edged 

Banpdm — 

— 

151.7 


SEAQ BmwfcB (S pm) 

50.412 

57859 

46885 

50314 

49371 

~ 

Emmy Bargains 

— 

40613 






2009.46 

1373.72 

1,79928 

480.98 





Equity Barbate , 
Shares Traded CmO 

— 

— 

60,565 

8488 

63877 

5743 

60,949 

6933 

21,097 

204.7 

Gilt Edged Bawlns 

Eouity Bargains ______ 

Ecpitty Value 

- 

1473 

3988 

3404.4 



Opening 

1695.7 


10 a.m. 
1688.7 



11 a.m. 
16785 


Noon 

16793 


1 p.m. 

16793 


2 p.m. 
16803 


3 p.m. 
1689.1 


4 pjn. 
1682.7 


Day's High 1695.8. Day's Low 16743. Bate 100 Govl Secs 150W2&. Fund Id- 1928, OnSnary 1/7/35 GakJ Mines 12/9/55, 

SE Actlvttr 1774, «Nil-=1454. 

LONDON REPORT AND LATEST SHARE INDEX: TEL. 01-246 8026 


offer from Midsummer • Leisure, 
touched llOp prior to closing 2 
higher at lOBVfep on suggestions or 
a counter-bid from Corton .Beach. 
GRA added 2Me to 129p pending 
the outebme of bid talks with 
Priest Marians; the latter slipped 
10 to 443 p. Owners Abroad, 'in 
which International Leisure holds 
a stake, gained 14*6 to 141 Vip on 
renewed takeover hopes. 

A slightly easier sterling 
exchange rate against the dollar 
encouraged renewed buying of 
Jaguar. The business largely 
reflected activity. between 
marketmakera but some US 
interest was reported and the 
shares reevered 8 to 52?p. Reliant 


down at 322p. 

Sporadic buying Interest lifted 
Drummond 15 to 180p and Dora 
Mill 7 to 215p. b ut spa smodic pro- 
flt-taldog took SEE! down 6 to 
153p and H. Ingram 8 lower to 
I57p. R. Smalls haw rose 5 to llOp. 

Securities house Smith New 
Court went higher still on specula- 


far Com- 
bined English Stores, saw 2.310 
calls sold 5,580 puts. 

Traditional Options 

• First dealings May IS 

• Last dealings May 29 

• Last declaration August 20 
Far Settlement Sept 1 


VmMi WU OpVkVW- w * t a 

tion that the group would shortly For rate indications see end cj 


announce bumper profits; the 
shares closed 11 up at a best -ever 
21 lp. Ex-Lands, 8 oft at 72 p. sur- 
rendered part of the previous ses- 
sion's sharp gain an Cleves Invest- 
ments' acquisition of a uear-15 per 
cent stake bat Kvrahn, which holds 
the major shareholding in Ex- 
Lands. advanced 7 to 55p. Silver- 
mines reacted 8 to 125p. 

Energy stocks held up fairly 
well until the late dealings when 


Unit Trust Service 
Stocks deal in for the call 
including Lloyds Bank, Jaguar, 
Metals Exploration, Hughes Food. 
GEC, Rolls-Royce, Barker and 
Dobson. Bridon, Blackwood Hodge. 
Norfolk Capital, Commercial 
Union, Brooke Tool. ASDA-MFI. 
Sycamore, Storm guard. Scottish 
Metropolitan Property. Rock. 

Leisure. Kalon. KCA 


_ .. Drilling, Waller Lawrence. 

bounced 4 to 42p following diges- the appearance of domestic sel- Airship Industries, Sound 
tion of Wednesday's interim i er9 _i° wered prices across the Diffusion, Antler and LASMO. 
report, which promised a second- SSS™ - closed 6 Vi down at Puts were taken out in NalWes* 
half return to profitability and a and Shell lost at £121%- fault, Hill Samuel, Glynwed, Kacal 

resumption of dividends next Enterprise shed 4 to 259p despite and Rank Organisation, while a 
year. Component issues were **** optimistic statement at the double option was arranged in 

annual meeting. Conroy Petroleum. 


growth, while Guinness slipped 3 
to 354p. Matthew Brown, strong 
recently on Scottish & Newcastle 
bid hopes, drifted back 9 to 639 p 
while Greenall Whitley gave up 
part of the previous three-day rise 
at 277 p, down 2. Against the trend, 
Bnrtonwood improved 7 to 737 p. 

Speculation about the inten- 
tions of Australian entrepreneur 
and major shareholder Mr John 
Spalvin following his appearance 
at the company’s annual meeting 
boosted Coates Brothers Ordinary 
22 to 304p and the A 14 to 253p. 

Stores managed to make prog- 
ress. stimulated by hopes of con- 
tinued buoyancy in consumer 
spending. Combined English 
Stores rose 7 to 417p following a 
report that Sears is poised to 
counter bid for the company; Next 
is currently bidding for CES. hav- 
ing topped an earlier offer by Rai- 
ners. Body Shop jumped 20 more to 
820p still boosted by the US 
expansion while E. Upton ‘'A” 
rose 10 to llOp awaiting farther 
news regarding the possible 
acquisition of Southern and City 
Property. Preliminary results 
from Underwoods failed to match 
market expectations and the 
shares dipped 11 to 198p. 

Leaders in the electrical sector 
mirrored the overall market 
performance which reflected the 
latest opinion polls. British Tele- 
com slipped back 6 to 294p on a 
turnover of 14m shares, while GEC 
lost a farther 3 to 225p, with 7_3m 
shares changing hands, on farther 
consideration of Hanson Trust’s 
denial of any bid intentions. 

Movements in the Engineering 
leaders were limited to a few 
pence. Elsewhere in the sector. 


FT-ACTUARIES INDICES 


These Indices are the joint compilation of the Financial Times, 
the Institute of Actuaries and the Faculty of Actuaries 


EQUIITY GROUPS 

& SUB-SECTIONS 

Figures in parentheses show number of 
ttocks per section 

Thursday May 21 1987 

Wed 

V 

T«s 

V 

Ho> 

V 

Yew 

ago 

(aprac) 

Index 

No. 

Change 

% 

Esl 

YieM% 

(MaxJ 

Gross 
06. 
YietdSG 
(ACT at 
77%) 

EsL 

WE 

Ratio 

(Neti 

Marfi. 

1987 

Id date 

Index 

No. 

Index 

Nol 

tndex 

No. 

Index 

Ns. 

1 

CAPITAL GOODS (211) ... _ 

90732 

-0-7 

784 

2.92 

16.96 

9.07 

91389 

928.13 

92137 

716.74 

2 

Building Materials (27) 

1156.43 

-08 

783 

288 

1783 

958 

116303 

117827 

116297 

79423 

3 

Contracting, Construction (33) 

152984 

-03 

7.71 

302 

1786 

18.65 

153319 

1549.76 

154352 


5 

Electronics (36) — 

206081 

-08 

751 

203 

17.45 


207580 

213108 

2134.95 

165039 

6 

Mechanical Engineering (59) 

49986 

-07 

8.43 

387 

1502 

783 

502.90 

510.74 

50559 

40989 

8 

Metals and Metal Forming (7) 

49833 

-05 

786 

3.05 

1606 

536 

50087 

50501 

49884 

347.93 

9 

Motors (15) — i — 

334.43 

404 

985 

309 

12.73 

384 

33385 

33982 

13638 

28887 

10 

Other Industrial Materials (21) 

149036 

-L4 

680 

331 

1937 

18.43 

151285 

152552 

150580 

1291.79 

21 

CONSUMER GROUP (185) 

1257.48 

-Ol 

6.16 

250 

20.96 

889 

125932 

127654 

126831 

901.90 

22 

Brewers and Distillers (22) — 

116140 

-06 

8.03 

384 

1582 

589 

116858 

1192.71 

1181.71 

92484 

25 

Food Manufacturing (25) — — — 

95759 

-OS 

788 

304 

1888 

10.90 

962.45 

974.73 

97357 

65425 



2316.41 


5.75 

2.49 

23.77 

1185 

231437 

7136 m 

238085 


27 

Health and Household Products tlQ>- 

235356 

—04 

438 

185 

2B82 

8.73 

236281 

239457 

237188 

150552 

29 

Leisure (31).— ~ 

130042 

-07 

5.97 

387 

2288 

1484 

130951 

132623 

131681 

87430 

31 

Packaging & Paper (15) 

65486 

-03 

6.00 


21.70 

4.97 

65651 

66253 

65954 

44883 

32 


366838 

-03 

639 

388 

2180 

3382 

367986 

370621 

373188 

2333.97 

34 

Stores (37) 

111733 

+08 

5.98 

252 

2281 

656 

110855 

112780 

110784 

88336 

35 

Textiles (16) — 

750.49 

-03 

7.74 

2.73 

1489 

583 

752.41 

75531 

73780 

53537 

40 

OTHER GROUPS (87) 

105186 

- 1-1 

7.77 

309 

1681 

8.19 

1063.42 

106129 

107126 

78050 

41 


146530 

-08 

486 

1.70 

2782 

886 

146859 

1480.99 

147159 

08 

42 


1283.94 

-0.9 

781 

381 

1602 

18.71 

129583 

1318.44 

130131 

85526 



132440 

-0.7 

689 

382 

1783 

7.75 

133302 

134455 

133152 


45 


214184 

-18 

738 

3.71 

16.98 

23.04 

216385 

219626 

218959 

156323 





881 

389 

1680 

189 

1160-45 




48 

Miscellaneous (25) 

1392.75 

-07 

9.45 

305 

1287 

1756 

140228 

1425.75 

141125 

100748. 


49 


51 


59 


99 


INDUSTRIAL 69 PUP (483). 


Oil & Sag <171 — 


500 SHARE INDEX (500). 


FINANCIAL GR0UP(1X7). 
Banks ( 8 ). 


Insurance (Life) (91 

Insurance (Composite! (7) . 
Insurance (Brokers) (9) — 

Merchant Banks (11) 

Property (46). 


Other Financial (27) 


I n ve stm ent Trusts (94) .. 

Mining Finance (2) 

Overseas Traders (11) — 


ALL-SHARE IN0EX(724) . 


FT-SE 100 SHARE INDEX 4 . 


1123.76 


202436 


120044 


74689 

78383 

101736 

560.94 

119589 

39080 

113533 


481.01 


99635 

54437 

104380 


1078.42 


Index 

No. 


2153.7 


-03 


BaEaciaggEaiiigEi GSEg 


-12 


- 0.9 

-28 

—13 

-03 

-03 

-03 

-*-03 


+03 

-28 


-0.7 


Day's 

Change 


1-203 


587 


6.73 


1885 


9.03 


486 

687 


582 

831 


Day's 

High 


21808 


436 


389 


3.91 

4.78 

434 

436 

430 

334 

237 

333 


235 

3.05 

432 


330 


Day's 

Low 


21533 


18.95 


733 


1483 


3182 

1834 


20.93 

1489 


833.60 

3^6iz55j6|599!57T3w!l6l 120680 


1120 




1186 

2539 

20.71 

11.76 

2284 

2.91 

436 

383 


753.43 

79936 

103035 

56281 

119628 

39080 

113838 

479.74 


765.75 
82733 
104137 
56531 
1204.76 

395.75 
1148.99 
48238 


74986 

802.14 

103289 

55133 

1204.76 

38737 

112180 


47933 


59003 

62237 

81536 

48932 

117582 

34930 

75983 

34139 


May 

20 



21748 I 221431 2192JL 


FIXED INTEREST 



PRICE 

Thws 

Oar's 

Wed 

xd adi. 

roartl. 


INDICES 

May 

change 

May 

today 

1987 



21 

% 

20 


to date 


British Soiemnent 








12451 

-0.06 

12489 


438 



J 45.73 

-081 

145.75 


583 

3 

Over 15 years — 

155.78 

+025 

15555 

— 

536 

4 

Irredeemables — 

16883 

- 0.10 

168.99 

— 

6.07 

5 

AH stocks 

14157 

— 

14156 

— 

4^ 


Index-Linked 



12356 


053 

7 

Over 5 years 

13946 

-0.45 

120.01 

— 

U7 





120.11 










Debentures & Leans. 

12516 

-0J4 

12534 

— 

3.79 

10 

Preference— — 

88.49 

+023 

8829 

— 

2.77 


AVERAGE GROSS 
REDEMPTION YIELDS 


British Government 
Low *5 wpjr< 


Low 5 years.. 

Coupons 15 years 

25 years... ......... 

5 years. 

15 years 

25 years. 

High 5 years 

Coupons 15 years. 


Medium 

Coupons 


Irredeemables 


25 years... 


! Index-Linked 
11 1 Inflafn rate 5% 
12 ' Inflat'd rate 5% 
13 j Intlarn rale 10% 
14| Inflat'n rate 10% 


18 


Site- 
Over 5 yis™ 
5yrs... 
0*er5yrs...J 


Betas & 


5 years. 

15 years. 

2 S yeas.. 


Preference- 


Dun 

¥. 


7.72 

8.73 

8.74 
8.77 

8.95 

8.96 
8.94 
988 
891 
882 


236 

335 

189 

345 


939 

1087 

1032 


18L23 


Wed 


7.72 

*74 

8.76 

8.74 

8.96 

8.96 

888 

989 

8.92 

881 


283 

332 

136 

382 


9-70 

1085 

1089 


IflX 


(appro*! 


780 

8.74 

8.77 

886 

985 

986 
980 
938 
933 
886 


383 
336 
233 
3.09 | 


1831 

1004 

9.98 


10.74 


{Opening index 21803: 10 am 2170.9; 11 am 21573; Noon 2160 4; 1 pm 21596. 2 pm 21608; 3 pm 21698; 330 pm 21643; 4 pm 216L9 
T Flat yield. Highs and lows record, base dares, values and constituent changes are published in Saturday issues. A new list of constituents 


Derliesd eased 3 to 288p after the 
preliminary figures, hut Tyzack 
Turner advanced 22 to 237p as Mr 
D. Saunders, a director of the com- 
pany, reduced his holding to 7.88 
per cent 

Food Manufacturers eased back 
in line with the general trend, but 
Unigate were boosted by news of 
the proposed sale of its five 
engineering companies, (Giltspnr) 
and details of major expansion 
within its poultry division and the 
price closed 7 higher at 420p. Cad- 
bury Schweppes were active with 
some 9m shares traded; the com- 
pany's US presentation is thought 
to have gone well, but the shares 
eased a farther 4Vs to 241V*p 
reflecting fading takeover hopes. 
Among Retailers. Dee Corporation 
rose 10 to 423p as buyers returned, 
while Bqjam, after touching 222p 
on takeover hopes, fell back to 
close 9 cheaper on balance at 208p 
following the company's denial of 
any bid talks. 

Ladbrofee closed 3 off 4L2p: the 
High Court has dismissed its 
injunction against ExteJ in con- 
nection with the recent adverse 
rumours that had been sweeping 
the City and depressing the share 
price; Ladbroke have again stated 
that the rumours are without 
foundation. 

Miscellaneous Industrial lead- 
ers presented a mixed a pea ranee. 
Boots, still benefiting from the 
recent April retail sales figures, 
revived with a rise of 8 at 320p 
after a volume of 11m shares; the 
preliminary figures are scheduled 
to be announced next Thursday. 
BTR, in contrast, gave up 8 to 3L2p 
and BOC eased a few pence to 
456p. Elsewhere, Avan Rubber 


were a strong market again at 
643p. up 33, following comment on 
the preliminary figures. Ashley 
Industrial Trust met with persis- 
tent speculative buying and 
touched 123p before closing 16 
higher at 112p; the company 
stated yesterday that in relationto 
the increase in the share price, it 
was not aware of any information 
which calls for an announcement 
to be made. NMC advanced 14 to 
210 p on news of the agreement to 
acquire A. J. Bingley, a privately 
owned flexible packaging com- 
pany based in Bristol for approx- 
imately £2. 86m. Demand revived 
for J. Wilkes, up 28 at 280p, while 
Just Robber, still reflecting an 
investment recommendation, 
improved 5 more to 107 p. Triefus 
responded to the preliminary 
figures and proposed scrip issue 
with a rise of 18 to 97p, but profit- 
taking clipped 15 from LDH at 
137 p. 

Takeover situations, both actual 
and rumoured, provided the fea- 
tures in the Leisure sector. Riley, 
the subject of a share-exchange 


undecided with Lucas Isdstries 4 
up at 587p and Dewty 4 down at 
250p. Distributor Hartwell gained 
2 to 115p on belated consideration 
of the increased annual profits 
and scrip issue. 

International Thomsen dipped 
on the March quarter loss, the 
first ever, and settled 30 lower at 
T04p. Recently-firm Trinity shed 
35 to 695p and Home Counties 15 to 
500p. Paper/Printings bad Delyn 
Packaging up 25 more at GQ5p and 
Encalyptns Pulp 2 Vi points higher 
at £20V«, the latter on bid specula- 
tion. Conrad rose 10 more to I06p, 
also influenced by takeover 
hopes, while Aspen Communica- 
tions jumped 13 to 440p. An invest- 
ment recommendation boosted 
THD Advertising 5 to 156p. 

Leading Properties showed lit- 
tle alteration overall, but selected 
secondary issue attracted sup- 
port not least Dares Estates which 
spurted 6 to 51p on the announce- 
ment that the company had 
acquired a West End property off 
Regent Street for £11.7m; the 
board considers the property 
offers an exceptional investment 
opportunity- Arlington Securities, 
which revealed a major acquisi- 
tion in the West Country on 
Wednesday, rose 10 more to 253p. 

A flurry of profit-taking ended 


TRADING VOLUME IN MAJOR STOCKS 

The following is based on trading volume For Alpha securities dealt through Use SEAQ system 
yesterday until 5 pm. 



Aaoc-BrU. Foods _ 
Argyll finxgi . 

BET HI - . ~ 

BOC 

BPBInds 

BPCC 

BTR 

Barclays 

Bass 


Beediam — 
Bfcie Circle. 
Boots 



NEW HIGHS AND LOWS FOR 1987 


Cable & Wire 

Cadbury Schwps — 

Coats Vryella 

Comm. Union 

Cons. Gold 

frqfllmm. - 

Cotiriaulds 

Dee Conn 

Dixons Grp 

English China Clays. 
Fhons 

Gen. A 

Gen. Elect. 

Glaxo — ; 

Globe Investment _ 
Granada 


NEW HIGHS (161) 

BRITISH FUNDS (1). BANKS (5). 
BREWERS (4), BUILDINGS (11). 
CHEMICALS (5), STORES (11), 
ELECTRICALS (10), ENGINEERING 
(9), FOODS O), HOTELS CU, 
INDUSTRIALS (29), INSURANCE (3), 
LEISURE ( 6 L MOTORS (5L 
NEWSPAPERS (4). PAPER (9), 
PROPERTY m. SHIPPING (3), 
TEXTILES (2), TRUSTS (25). OILS (2). 
OVERSEAS TRADERS (2), 


PLANTATIONS (1). MINES (it 
NEW LOWS* (42) 

AMERICANS (2S). CANADIANS (7) 
Bank Montreal, Bank Nova Scotia. Can 
Imp Bank, Granges Expkv, Hertlys Group, 
Rio Algom, Trans Canada Pipe. BANKS 
a) MCorp, CHEMICALS (1) Novo Inds, 
ELECTRICALS (1) Nth Telecom, 
INSURANCE (3) American Gen Cpn., 
Travelers, USLIFE, PAPERS (2) Scott 
Paper. TRUSTS (1), Japan Asset 4»ape 
§Cnv 1994, OILS (lj, Ohio Resources. 



Gubmess. 

Hi 

Hawker Sidd 

Hlltsdo 
ICI — 


Volume 

Closing 

Day's 


Volume 

Ctosbig 

Day's 

000 's 

price 

change 

Suck 

000 's 

price 

change 

6500 

170 

-3 


4,100 

527 

+8 

LIDO 

421 

-3 

Ladprofce - 

3500 

412 

-3 

1500 

203 

-1 

Land Securities 

2000 

495 

-4 

woo 

378 

-4 

Legal & Gen. _ — _ 

UOO 

304 

-3 

560 

444 

-2 

Utaids Bate — — 

£700 

523 

-20 

3,200 

539 



B24 

295 

-3 

8500 

282 

+3 

MEPC 

1,000 

467i 2 

_l e 

770 

456 

-4 

Marks &Spncr — 

2.600 

252 

+1 

121 

748 

-10 

MKSand Bank 

2,500 

633 

-24 

2 J 0 O 

297 

+2 

Nat West Bank 

3,600 

673 

-12 

LBOO 

312 

-B 

Next — 

98b 

348 

+1 

1,400 

543 

-16 


4.500 

629 

+10 

910 

977 

-11 

PAG — 

1500 

667 

-1 

1500 

507 

_ 

PilkWigton Bros 

337 

841 

-a 

210 

905 

-2 


1.400 

225 

-6 

10800 

320 

+8 

Prudential — 

607 

912 

-23 

7500 

148 

-6 

Ratal 

1500 

246 

-4 

9500 

612 

-IS 

RankQtg— 

397 

735 

-6 


435 

-2 

RUM - 

418 

312 

-5 

37800 

107 

-M* 

Recfcitt & Col 

319 

£ 11 A 


3,400 

264* 

-41* 

Redfond 

1500 

499 

-3 

6500 

335*2 

- 6>2 

Reed Inti. 

961 

441 

-3 

13,000 

294 

-6 

Reuters 

406 

698 

+3 

1500 

249 

_ 

RMC 

140 

900 

-7 

z;ioo 

313 



RTZ 

727 

£ 10 % 

-A 

3500 

403 

-6 

RoUs-Royce.— . 

146500 

144 


9,000 

2411a 

-4* 

Rowntree Mac 

352 

505 

-2 

651 

650 


Ryl Bank Scotland- 

750 

339 

-1 

6500 

330 


Royal Insurance — 

775 

963 

-2 

1500 

£ 111 , 

-J. 

STC _ 

4500 

301 

+2 

266 

669 

-3 

Snatch & SanttW - 

817 

606 

-12 

1,700 

456h 

“ 31 ? 

Satosburj 

XOOO 

520 

-2 

7500 

242 

+10 

Sean 

25,000 

164*2 

-Hi 

2500 

388 

+2 

Sedgy* ki 

420 

300 

+1 

102 

458 

— 

Shell Trans 

2500 

an 


1500 

355 

+ 4 % 

Smith A Nephew— 

2,700 

158 

- 1*2 

428 

993 

+8 

Standard Chart 

518 

823 

-? 

6000 

225 

-3 

Storehouse 

1,480 

324 

+5 

1500 

£15k 

— 

Sun Alliance 

256 

858 

-5 

180 

167 


TSB._ 

2,900 

89 


698 

355^2 

-h 


1500 

564 

—6 

L600 

522 


T»»m» 

WOO 

520 

-1 

573 

£141, 

+,*« 

Thorn EMI 

829 

689 

4-1 

159 

960 

-3 

Trafalgar House— 

1,100 

355 

-b 

1500 

321 

-2 

f house Forte 

3.700 

235*2 


1500 

354 

-3 

Unigate 

2800 

420 

+7 

7500 

164 

-21* 

Unilever 

794 

£29 IS 


580 

530 


United Biscuits. — 

728 

299 


1500 

277 


Wettoome 

960 

449 

-11 

1,400 

£13* 

-4 

Whitbread "A" 

WOO 

3«7 

-3 




Wootworth . 

716 

873 

+10 


RISES AND FALLS YESTERDAY 


is available from (he Publishers, (be Financial rimes. Bracken House, Cannon Street. London EC4P 4 BY. price 15p. by post 3Zp. 


British Foods — — — 

Corporations, Dominion and Foreign Bonds 
• Industrials 


OFFICE EQUIPMENT 
SURVEYS 1987 


The Financial Times is proposing to publish the following 
Surveys on the dates listed below: 


Monday 8 Jane 


Wednesday 24 June 


Tuesday 1 September 


Monday 19 October 


Monday 2 November 


Refurbishment 


Corporate Communications 


Office Equipment 


World Telecommunications 


Computers in Business 


Information can be obtained from: 

MEYRICK SIMMONDS 

Telephone 01-248 8000 ext. 4540 
or your usual Financial Times representative. 


1 The content, sue and publication dates of Surveys in the Financial Times are subject to 
change at the discretion of the Editor." 


Financial and Properties . 
Oils 


Plantations. 

Mines 


Outers . 


Rises 

Fills 

Same 

45 

47 

21 

2 

20 

44 

455 

.478 

609 

177 

131 

286 

16 

• 41 

55 

1 

1 

12 

25 

96 

63 

57 

89 

94 


Totals 


778 


905 


1,184 


LONDON RECENT ISSUES 


EQUITIES 


lane 

Me 

|gj 

§ 

1987 

Shxh 

Ctosag 

Price 

B 

Met. 

Dt*. 

Th»« 

Cor'd 

Gross 

virid 

□ 

!□ 


f!80 

F.P. 

150 

218 

189 

A/rtoorslOp 

218 

♦1 

■rtrj 

25 

3.4 


rj>. 










f77 

fjp. 

306 

105 

£ 

tBonaedLaoitnauslOi 

103 




24 

3 2 

5*35 

F.P. 

80 

170 

133 

Bracks Service Cnwj 

170 



22 

30 





■ L iH 







II 8 

F.P. 


440 


War Grow 5flp 

430 

-5 

026 

26 

30 

130 

F.P. 

80 

135 


Cambridge lustra. 

129 

-1 

ROJ 

80 

0.7 

455 

F.P. 

120 

98 


vCanteWge Isotope — 

85 


R2D.9 


055 

4200 

F.P. 

no 

242 


+Ca5deCoovni.5p_ — 

242 

+2 

870 

22 

4.0 

4185 

F.P. 


226 


OnmoBylnd. 

225 


L4.9 

27 

30 


FJ>. 


15 

10 

OiadHnUHtts-urns _ 

13 


— 



115 

FJ». 


140 

114 

Chcdi lOnrtes) 5p 

135 

*2 

82.75 

330 

27 












III 

F.P. 


310 

284 

CMM50P 

284 

-6 

tBD 

15 

30 

4130 

FJ>. 

220 

153 


Cooper (AUdlOp 

150 


*40 

25 

3.6 

4125 

FJ>. 

290 

154 


CBOflefl Croop 10p 

154 


WU9 

3.1 

28 

#135 

F.P. 

290 

lBO 


DoHlwlOp— 

180 


1045 

250 

2b 

HI 

FJP. 


128 

rw 

£RACnv5p 

128 

+2 

W 



4155 

FJP. 



EJrJ 

4Ep«t* Group lOp 

225 



L40 

2b 

24 

4120 

KP. 


181 


4Fifofoz5p 

180 

+2 

02.7 

28 

20 




l . a 









F.P. 

IO 

145 

rt * j 











FTTM 







#120 

F-P. 

290 

127 


+U»diGroop5p 

121 

-1 

L4JJ 

24 

45 

4114 

FJ». 

24/4 

360 


M era n Asset Hgoitjp 

360 



8501 

40 

L9 

tt 

F.P. 


£231; 

ESI 

HoUaCoroPM. 

B "'I'D 




□ 

a 

. 4106 

F.P. 

— 

L2U 



118 

+1 

80257c 

m 

fell 


F.P. 



m 






mi 

#55 

F.P. 

3/6 

88 


+BKF Group Wp 

86 


u2J9 

24 

35 

4140 

F.P. 

US 

190 

•11M. 

fReliinceSecGrossSp 

190 

+ib- 

645 

25 

32 

170 

85 

— 

147 

I2t&2 

ItoOvRoycr 20fl 

145 

-2 

W4.99 

27 


4135. 

F.P. 

— 

Ji 

L63 

4Srim.Appts.5p 

233 

„ 

L25 

28 


#125 

FJP. 

— 

170 

155 

tSfasp&LawlQp 

162 

n-rr- 

o3.0 

24 


125 

F.P. 

150 

260 

242 

4Sock Shop Ii4l5p 

239 

+1 

RL35 

30 

vJFl 

#125 

F.P. 

2/6 

65 

158 

#OCLGr 0 BpSp 

160 


u2-5 

28 

1^1 

4140 

FJ>. 

150 

210 

171 

VatwgUdelnU-Sp 

210 


R125 

35 


IT 

FJ». 

— 

215 



E2B\ 




^■4 

130 

IJJI 

16/3 

151 



146 


L34 

30 


#120 

[23 

29/4 

300 

145 

*WyevaieGifo.Crii50p 

300 

+30 

x2A3 

28 


#133 

E23I 

220 

148 

136 

rRMiop 

145 

— 

R4.41 

35 

22 


P.L 

fate 


159 

133 

1B8 

186 

636 

13.7 

148 

15.4 

158 

161 

20.1 

213 

15.1 

158 

203 

M.O 

22.0 

243 

16.9 
M3 

25 .0 

11.9 

18.0 

13.7 

14.9 
17.1 
14 0 
333 


170 


FIXED INTEREST STOCKS 


ls»t 

Aroom 

LKm 






Prtx 

PtA 




Stack 



£ 

LP 

Omc 

■ 

High 

Lav 


£ 


>100 

F.P. 

— 

117 

ni 

Barium Grp. Cm. Red. Prl. lOp ... 



10309 

ao 

256 

131, 

13 

EjbI Angltai Wuer 7* Red Pif 199*98 



Tt 




125 

123 

lEonric 12 \% Cnv.lfos.ljL 1988(90 



— 


2*3 

Ill's 

109 

Eflsa&G«iltti-iri»llkSGlnMLDdiajI8 





— 

lOOp 

9bko 

Friend^ Hotels 4k9fc Cm Cm 8ed Prl a __ 



— 

£23 

2M 

26*, 

25 

EL PortM Esti. 9>^V, 1st ML Oh Tntl. 



$100356 

130 

13/8 

35*. 

30’s 

Land Seatntie Uev lOSi 1st Ml Dta 25 - 



$99 

£10 

2*1 

VH 

91, 

MkWBSSW Water 10% Red Drt 2013/17 



— 




102 

98 




— 

F.P. 

— 

UU 

VTh 

Oo-8^pcZ3J08 


— 

— 

£23 

uai 


Z*A 

9»* Hs-teg Assoc. 84.9k G«Ub2037 



$95221 

£25 

210 

a 

246 

Peadiy Property 9*2% 1st Ut 0862015 





— 

U4p 

imp 

PeriHHgs. 5 i 4 pcCav.IWM n 



— 

£40 

108 

m 

y* 

Do.9%c1sle.Ocb.2DU 



0 


31/7 

46ov» 

35(m 

Pried M»iars6l J KX«.Un4.Ln20tm3 




OS 


2»« 

24^ 

5a*. Easuni Inr.Tfi. 9L% Orta 2020 






TT*, 

2S^ 

Van 9^4. Deb. 2015 

271, 






“RIGHTS” OFFERS 


Essue 

Price 

Jknaam 

Paid 

«P 

Lses 

Rmuk 

1987 

Date 

HIW 

Lour 

240 

Nit 

— 

26pm 

22pm 

43 

NU 

107 

13pm 

11pm 

180 

NU 


23pm 


154 

NH 

an 

22>»m 

11pm 

IT 

Nrt 

23/6 

13toa 

Item 

U 

Nil 

29/5 

62pm 

45pm 

110 

NH 

— 

19pm 

15pm 

215 

Nil 

— 

22nm 

18pm 

105 

hit 

— 

*2pra 

Z3pm 


Suck 


Ahbc. B«ft PnbKten 20 b . 

Btodnmd HaHa» _ 

Ottrtwr (JbM 

Ftrier (AJ 5 b 

Gold & Base Meaazi#_ 

lm.fti Sateen Wra. 

Phoena Tm*er 
Scotltfi KeritiMeTa. 
l|zackiWJL)10p 


Clowg 

Price 

P 


26pm 

12 pm 

14pm 

Item 

12pm 

62pm 

18pm 

Z2nm 

35pn. 


-2 

-1 


-1 


Remndatlmi date mMBy last day for de*rmg frre ef stamp duQ. * AnaiaDsrd OMdend. 6 Fuumh^. 
on praspeebn vsUmatts. d thrldwd mu paid or payable on pot of cwlLd, cover based « 
eaptaLy Asaim* d hltenfl and yield. I> Assumed dividend and yield after serin IhuTf awfcnd^T.!! 

ssaasKcaRrs 


forem, „ eainattfl maalted dWfland ram, cover lluSdS. ” *** 


9 Isaied by under. .. _ M 

of opiUbsaUH, 4 Placing Rrimmtem d. il ta earned 





























49 




Financial Times Friday May 22 1987 0 


WORLD STOCK MARKETS 



OVER-TliE-COUNTER Nasdaq national market, closing prices 


Sad* M* law Urt Ctag } «•* 


Continued front Page SI 


OMW 
OgWp JW 
Ofllbay 1 M 
OtMCasltt 
OfeKatt M 
GW*® JO* 
OWiP M 
OoKricmM 
On*Bc JS 
OpOcC 
QpUcft 
Ofadwi 
CAM 

OwiM Jl 
QUA1 B JO 
OttTP 2S2 
OmoMaJZ . 


P«* 

PCS 

ftc 1JZ 
ftwwijow 
fttftaJD* 


4S W| 
W 7T0 2S% 
Si 5 37 
B #7 41% 
S 131 21% 
32 BuiS 4 ! 

11 TBS 2» 
M3 21% 

7 202 17% 
84 M 18% 
ACEBB 221* 
00 <H2 2-*% 

12 231 8% 

2! R» W; 
« B 29'. 
Il 1M JB% 
14 SO IB’s 


W, US' >1 
Ml »%- % 
20 20 
41% 41% 

20 % 21 + % 
40% 45% + % 
3«l 26% 

31% 31% - % 
11% 17% 

W% 18% 

20 % 22 + 1 % 
24 24 

*% 8% 

07% 71% +3% 
20 38% 

30% 38%+ % 
10% 18% - % 


ftoOnC T 
BgMUte 
PS8M«J2« 
PWWtt . 
Porte 

22?* 
Pwma ua 
PVfad 

S*? 1 **. 

Pt»e* 

HeSm, 

Awm ins 
P*H%a- • 

peyw a . 
Jwm .10* 
*>»ta 

£«bCW JOB 
PtmU, 

a?- 

Pncae* 

•ftrtll 

PlMvO.IBb 

P^OCa .09 
£? «* 

k 70 

/ *'*.% ,B4 

poSob, n 

.40 

Pmaa, J» 
py™t 


OuJncyl 4SC 
Ow*M 


P Q 

W70 8>( t 
00 45 30% M% 
W 770 43% 

21 M2 71% »% 

■ 4 BOB 18 10*4 

ST KM 10% 10% 

. « .88 21 020 

29 13 20 20 

432434 15% >4% 
31 11 13% 13% 
HKm 2* 83% 

12 127 20 27% 

» » 20% 26% 

13 U 30 £% 

*4 82S 02 00 

31B 18% 10% 

128 15% 1«4 
301 25% 20% 
ai B 20% 30 

7 143 117, 11% 

A too 34% 341* 
805 7% 7% 

2> 716 39% 23 
84 12**011% 
332304 93% »% 

78 181 20% »% 

79 705 36 3*% 

1 13 K 
ar 3to S£| a% 
W » 32% ® 
m 11 w% «% 
r aw M% w% 

31 4B8 30 38% 

B 308 *0 17% 

13 174 *8% IS 

403 <% 4*1 

W 1 «% 3*t» 
SB 30 18 10 

TO 320 aa% OTi 
an 10 M« 
10 w» «% Wi 

.8 291 M*J M 

to »’ 5. 

30 80 3*% 3*% 

H 31 « -tOU 
820 1% «% 
W 11% 107, 
I« 8% 7% 

4888 0% •*» 

94 a 10 n% *3 

339 11% 10% 
32 28% 28% 
415 1«% 14% 


•% + % 
26*. - % 
44% - % 
70% - % 

IB * % 
10 % + % 

21 + % 
20 

28%+ % 
13% 

23% -1% 
28 + % 
28% 

»%+ U 
82 +1 
18%+ % 
H% + % 
28%+ tl 

s%=« 
*s - % 

22i*+ % 
11% - % 
23%+ % 
20%+ % 
36 + % 
12 

W%+1 

a -1 

0% 

14%+ % 
*3 + % 
17%- % 
« - % 
OM 
43%+ % 
38% ~ % 
» - V 
27%“ % 
10 
13% 

»%+ % 

a - % 

5*% ■ 

41 + % 

0% 

11%+ % 

B + % 
«%+ % 
23%+ % 

29*1 + % ! 
14%+ %1 


BPM -72 

RadSys 

R*ta*r 1.1* 

B wv w 

RbcvS jo 

Raatna 

RMCtn 

RwtoA 

RvpAmJO* 

RMitrH J8* 

Rwon 

aa* 

RHSflfn 

ftchmW 

RWM 

(VooBNti.io 

RoadSvI.lQ 

BaotiCS 

RorCM 

RavflFd 

Ro>aBs.l8a 

Roopntt.191 

RossStr 

ft OU M * JO 
Ryanfm 

SO By 
SCOW 
SEI 

SHL By* 
SKFAB147W 
SPIPO 07 
S4KM4317* 
Sahcda J4 
Safaw <M 


Stint)** 

5tP*u»UB 

SalCp* 

Saitafe 


Sdwtw _ 
ScMM JO 
SO"*** 
SeMo 
ScoKO 
S**8*t* 
S a amP 
SEEOa 
SoMOr .08 
SvcMar .09 
3NO*k ■« 
StirtW) -73 
SImWH 204 

SMMya .18 
Sftorwa _ 
soma; JB 
StflmO, 
SncaSr 

swoons 

SIHOM 

SJMJ* 

SivBtMn 

SimAir 

Stt)*i* 

SmttiFa 

SocW0r*U0 

Soctjfflv JO 

SoiMA 


(H-W 

R R 

21 98 21% 21% 

14 156 9% 9% 

132525 457, 45% 
18 1161 10% 07, 

519 8** 6% 

22 as 291* 29** 
S 688 21% 21 

1181 22% 20% 
81232 W% 157, 
829 7Q% 807, 
29 22 T1% 11% 

U 311 34 33% 

188 32% 32 
2318 HJ% 10% 
202 131* 13% 
43 179u2S% 24% 
tt 112 27% 27 
192251 34% 33% 
100 12% 12% 
058 13% 12% 
7 9% 9*2 
7 481 17% 17 
110 20% 20** 
518 7 Pi 

5B 254 35% 34% 
19*858213% CT, 

s s 

25 8B1 28% 277, 
13 IDS 11% 11% 
182 31% 29% 
1Z7 19% 19% 
6S 56% 94% 
733 IB » 
485 31 30% 

3010249 24 2V 
7 624 56% W% 
113 11% 19 
T7 629 22% 22% 
103079 43** 42% 

10 232 10% 9% 

211465 12% 1t% 

91 15% 15% 
19 333 22 21% 

10 71 11% 11 

22 »» 177, 17% 

144 44 44 

18 SB 30 29% 

409 90 21% 20 

90 170 5% 3% 

45 3*5 u28 2% 

1815S*< 42% 40% 
B 26** 24% 
784 97, 9% 

88 806 +!% 11 
473 5% S% 

13 40 12% 11% 
21 <398 28 27% 

9 202 4S% 45% 
» 90 0% 8% 

31 7*3 27%. 77 
28 «% 15% 

29 280 43 42% 

29 930 18% 18% 

82 80* 22% 22 

23 no 10 9% 

28 101 11% 11 
2MS29 8% ft 

4B34S721S-1B 2% 

9 SB 7% 7% 

29 432 19% 1«% 
111063 10 M 
9 165 32% 31% 

11 132 22 21% 

16 32 11% 11% 


21 %+ % 
ft- % 

45%+ % 
10 % + % 

8 % 

29**- % 
21 - % 
22 % + 1 % 
IS 

897,- % 

11 % 

aa%- % 

W%+ *7 
«% + % 
as + % 
27% + % 

w* 

17 

VI 

34% 

13% 


«%-% 
31% +1% , 
W% 

S 47 ,+ % i 
18 +1% 
30% — % 
231* +3% 

54%+ % 
18 

22%+ % 
42%+ % , 
10 - % , 
1 »%- % ! 
»%+ % 
22 + % 
11 % | 

177 ,+ % 
44 I 

30 + % , 

vs 
26% +1 
41% + 1*1 
24% — % 
9%- % 
.«%♦ % 
ft 

111, - % 
277,+ % 
49%+ % 
8 %+ % 
27%+ % 
W%+ % 
42% + % 
W +1% : 
22% 

W + % 1 

11%+ % i 

5%+ V; 
2 % - 3-1 1 

tv- %: 
w% - % 
m%-%: 

32 + % | 
21% + % ; 
IW. - % 


«wi*b 
SomrSv 
SooceP M 
SCwNa JS 
SounN 
StnSHx 
Souiral JO 
. Sovna 1J8 
i Speedy, 
StdWc 
StdBefl JO 
SbptSelJSt 
Stan 

saste, ao 

StrlbK 
StwM JB 
I Stratus 
StrwbCUDb 
I Suyfcw 
StudLv, 
Subani • JO 
SuBRn JO 
SumHS JZ 
SunGnl 
SiinMa 
Sumnta f 
SytnbT 
SymbOc 
Syatlo 

SySottw 
ftiatM .12 


TCA J4 

TCS70 

TOF 

TMK JOB 
TP) B, 

TS bid* 

TSO 

Tairrtan 

Tandoo 

ThmdbJBw 

TcOOta* 

TatOMd 

TlcmAa 

-nCmwt 

Tafcrd* J* 

TalmMC 

Tataba 

Taboo Mm 

Taniwnl JO 

Thnnda 

3Com 

TokMV 

TdpMkZ 

WAp* 

TmMua 

Tmach 

TrtStar 

TriadSy 

Trtmad t 

TniaJo JB 

T«Kp 1 JB 

20C«4n J2 

TycoTy 

Tyaona 

UTL 

Uoomo 

Unto • 

UnFadl.lOt 

UnPtnujO* 


84 N 15 14% 

207 12% 11% 
18 64 51% 61 
101133 22% 21% 

27 595 20% 20 

B 9% 9% 

8 T2Z 207, ao% 

9 992 317, 31% 

58 2371 42*2 41% 
725 708 14% 14% 

« 205 44*4 43% 

50 14 13% 

385 11 10% 

IS 885 28% 27 
18 82 22% S 

8 41 18%d18 
62 799 38% 37 
M 2S3 42% 41% 
30 87 42% 41% 

IBB 82 81% 

71271 13% 13% 

14 334 14% *f!4% 
14 200 27% 27 
330 19 18% 

40 5800 427, 41% 

9 183 31 30 

3S 454 24% 24 

838 4% 4% 

10 70 10 0% 

11 448 0 7% 

248 T7% 17% 

28 270 28% 28 

T T 

13 B 12% 12% 
B 20% 20% 

49 617 «% 16% 

8 215 12% IS** 

13 39 11% 11% 

2755 8% 6% 

•512011118% M 

9 83 9% 9% 

M ft ft 

92249 5% 5% 

73 13% *31* 

29 127 17 «% 

1M 147 13% 127, 
29 10885 30% 297, 

2618 41% 40% 
44 288 34% 34 

338 IS 14% 
» 338 13% 13% 

34 257 20% 2D 
18 198 30% 29% 
138 13% 13 
388353 197, 17% 
700*25 B7% 87** 

18 45 2S% 26*4 

2 40% 40% 
38 211 31% 30% 

30 BB 15% 15% 

18 341 Pa 0% 
33 94 11% 11% 

35 W% 16% 
» 78 38% 38 

246 29% 29 

14 138. 18% IB 
W 431 11% 11% 
33 OH 21% 21 

u u 

SHU 17% 
7311264 147, <*% 

.16 820 14% 13% 
3 233 18 17% 

14 210 32% 32% 
32 49 48% 48 


15 + % ! 
117,+ % 
51 - % 
21% - % 
20 

»%+ % 
20% + % 

C 1 "- % 

ant 

13%+ % 
11 

27% -1 
22 %+ % 
M%+ % 
3a** +1% 
417,“ % 
42%+ % 
82 + % 
13% - % 
14%+ % 
27% 

19 + % 

4 £~A 

0% 

7%- % 
17% 

28 - % 
12% 

20 % — % 
n**+ % 
12 %+ % 
11%- 74 
*% 

18% + % 
9%+ % 

13%-% 1 
• 18 %+ % 
13% +1 
30%+ % 

41 +1 

34 + % 
IS + % 
13%+ % 

25r 5- 

29% - % 
13 %+ % 
18** -1% 
87%+®* , 

40% - % 
Sl%+ % 
15% “ % 
6%+ % 
11% 

15%+ % 
38%+ % 
29%+ % 
18% + % 
11 % “ % 
21 - % 


UACm, j04 145248 23% 23*, 

USCoi 1JDS 11 115 19 18% 

UnCoeF JO 8 B 1B% 18 
UHBCr 18 885 8 5% 

IMSvre JS 7 80 281* 29% 

US Bn J0 10 855 26% 25% 

US HOC .18 158456 11% 10% 
US Sur ,40 23 1068 29% 29% 
US Tr* 1 11 57 34 33% 

UStun J4 19 373 18% 17% 

UV«8, TJ4 W 150 30 29% 

Uftyfra 141033 15% 14% 
UmH» J3* 20 21 8 77, 

V V 

VBantl 31 31 28% 257* 

VLI 299 *% 41* 

VLSI 303 3454 15% 14% 

VU SI, 37 404 30% 20% 

VandLg 2311482 4% 4% 

ValFSm 5 299 14 18% 


Vtf«l 14* 7 745 36% 35% 


Vtaorp 73 10% » 

VtowM* 21 234 15% -Hi* 

VUdofl 12 42 «% 151* 

Vlponi M 280 16 15% 

vinujca 8747 19 IB** 

Votao 12S, 383 48% 47% 

W W 

WD401J2, 2D 15S 31% 31 

WaBvo M 10 53 201* 20 

WattSv ,1*a 107 12% 12% 

W*mm 179 io% w% 

WtebEalJB 8 252 17% 1B7, 

WFSU J8 7 432 24% 23% 

WMSB* M 4 448 28% 27% 

WatrK340e 13 886 18 171* 

Wanur&OGa 20 146 22% 22% 

W0U9P AS 12 65 31% 3Cft 

WbatFn 258 11*« UP, 

WoCmt 1* 712 29*« 287| 

WoMcp 39 8** 7% 

WalAut 23 1*6 10% TO 

WmCap 0 458 147, 14% 

WWFSL.10B S 34 18% 18*, 

WnVfW, 21 33 20 19% 

WmPt> IS 514 13% 13% 

Win* 11 147 18 16% 

warn* *91 22% 2z 

WmOrC JO 19 255 S3** 22% 

WKwa* 31 181 21% 21 

Wmtrs1J4b 16 280 48 44% 

WltUmtlJ* 14 1358 48*4 46% 

W1IIAL 15 537 10% 17% 

VntSFS 422 151* 14% 

WUmT, .72 14 275 28% 27 

WUmF 15 301 10% ID 

fVWnftnr 18 301 8% 8% 

WtoarO JO IN 77 18% 18 

Wobum JO 194 10% P, 
WCYS .10a 377 «% 13% 

WOW 182480 15% 14% 

Wont|0, JB 202519 197, 18*« 

Wyman JO o » W% 

W>M 20 082 30*4 29% 

X Y 2 

XCDwba 45 8 26 35 

XOMA 713 25 23% 

xioor 797 12% 12*4 

XWn 479881 13% 13% 

XytoQlc 277 17 Ml* 

Xyvwi 38 423 17 18% 

YkMFa J2 IS 901 31% 31% 
2Z8ast 796 15% U% 

ZZBMWt 221 11% 11% 

ZonNtl JO .13 614 21% 1»% 


3;i 

s> 


2J%- % 
18% - % 

’5* 

3 

25% 

25% 

W,- % 
2B%+ % 
33% - 1, 
M 

25% - % 

15 

8 - % 
28*4 - % 

4%+ % 

aii* 

«,+ % 

36 %+ % 
n - % 

15%- % 

w - % 
18 + % 
18% +2 , 
47%+ % 

31% + % 
20*4 + % 
12% 

10% 

17% 

*&+ % 
277, 

17*4 - 7, 

a%"' 

8% 

™ - % 

11 

18% 

W%- % 
13%+ % 
18% 

22% + % 
23 + % 
21%+ 1, 
4S%+ % 
481* +1% 
18% + % 
15% 

28%+ % 

a*' 

18 + % 

JS! + ' 

13% 

K + % 
*ft 

20% — % 


24% +1% 

12» + * 
13%+ % 

»%- % 
1S%+ % 
31% 

15% 

11% 

21 + 1 % 


NYSE-ConsoEdatsd 1500 Activs* 


* inSntM pre-cdsa flsyn 


Tndad Priea wDif 

09WB . 2.485.089 »%i +3V. tembpc 

BwttoM ZJM.180 75ft +3 HwBmJa — 

Nantw 2.143 JM 7ft + ft BM 

Tnn 1.791,500 37ft + ft ZqnO* 

Oirdw— 1J1BJB0 35 + ft ATT — 

AdHKMl7f 0*cAMi3tt 

TOKYO - Most Active Stock* 
Thursday, May 21, 1307 


tecta i «y- omon 

Tmftd Pita ootey 

1J14JB8 33 +1 

1J3ZJ80 45ft -1ft 

U 13.789 151ft +1ft 

1J 13, 100 25ft +1ft 

uaj«l 25ft + ft 


WEALD 

MSCmmllwl tl.L70l.. Cu) 451 00 4KJQ 4fc8 30 47b 50 <85* 3613(2;; 

"SMunUr Mat 2- ■!*&*' «■**»> 24.CW0 TSE 2.1 J8t3 
Saw value* o( all mditnarr 100 nertn Bnnurls 5E- 1,000 JSE Gow-255 7 J5E IihMjsih.*U- 
264 J ana ,uurs Id. All Orfluury ana Mciah-500. NYSE All ComirKwi SO Sl-irtem .vui 
Poor's -10, ana Toronto CoinpBilio aim Mpuh 1000 Toronto indues ba'^n 1975 jno Mormr.il 
Portfolio 41(83 t Eicludinq bond> J 400 InduslrMK plus 40 Uuliurs 40 Piruuei.ils ,uid 20 
irampons. la Closed fu) Unavailable 


MppooSMl-. 

KBtaEao- — 

tScadaZoMn - 
Tokyo Totata . 


Tcattad P6cn on Day TtwM Pitas ooDay 

4i57» 34S +8 Nppnn light M*a!~. 12.77w 3M +41 

28.19a 37S +31 NtahtaSml 12-43oi 387 +8 

25J4n 238 +28 Tohys Stsd 12J4« 920 +M 

2>Jhs 778 +56 Nftx»Kl*m TlJSm J17 +17 

IBJSa 377 +14 MppoaTiUa KobH>- 10J8« 458 +27 


lOMKM - Most Active Stocks 
Thmfay. May 21, 1987 

Suds Onhg Cbsog, 

Tndad Pita soO* 

146 Jin 144 Mb M Am 

37.0a 117 - 1ft Cadbury Scbnpt 

25 Jn 164ft - 1ft BET 

13 Ja 2M - 8 RmooTr 

fOJm 128+1 BiftWnny* 


Stock, Dosing Chang, 
Tndad Pita oa Oar 
9.3a >12 - 18 

9Jb 241ft - 4ft 
8.8a 282 +3 

7 Jin 164 ~ 2ft 

7ft Ml - f 


M- Chief price changes 

LONDON 


NMCInvs. 210 +14 BritAerojq«tce- 612 -18 # 

Owners Ahr.^_. 141» +14K HP 3B5K - W 


RISES: 

AshlndlTst— . 112 + « 
Av. RuHwr.i.— ■ 642 +33 

3oft1.it ' — 320 + 8 

Coates Bros. A. 2S3 +14 

ConrftlHUgs- 106 +10 

DwCorp.— - 242 +i0 


DelynPck* ^ — 805 + 25 

Drummond 180 +15 
EucaLPulp— S 3 ffA + tk 
F5alftyjj.)~ — 117 + 8 

Eto«h(CE3^, 488 +33 

Jtguar — 587 +8 

Kwahu - 55 +7 


Smith New Grt- 211 +11 

Triefus - B7 +18 

Unigate 42fl + 7 

Uptoa(B3A— — HO +10 


FAUS: 
Bejam ~ 


208 -9 


Qrcaprint _ 

Ex-Lands 

Ingram (HJ - 

LtoydsBk — 
Midland Bk- 
Ocean Trims 
Trinity Intl~ 


188 -15 
72-8 
157-8 
523 -20 
833 -24 
322 -9 
095 -35 


Underwoods — 198 -11 


Insurer buys 
into broker 

By Our Financial Staff 

FIREMAN'S FUND, the big US in- 
surance group, and a group of its 
subsidiaries have acquired a 10.9 
per cent stake in Alexander & Alex- 
ander Services, the US insurance 
broker, and plan to seek federal re- 
gulatory clearance to boost their 
holdings to more than 15 per cent, 
should they decide to do so. 

In a filing with the US Securities 
& Exchange Commission, Fire- 
man’s, spun off in 1885 by American 
Express, said it had acquired its 
Alexander & Alexander stock for 
investment purposes “and not for 
the purpose or meet of (hanging or 
influencing the controT of tiie com- 
pany. 

According to the filing, the Fire- 
man's Fund group bolds 3.8m Alex- 
ander & Alexander shares, includ- 
ing 15m shares purchased between 
April 13 and May 13 at S3 .47 to 
S28.07 a share. 

The group said its members “cur- 
rently intend to purchase additional 
common shares in the open market 
or in privately negotiated transac- 
tions or otherwise." 


Seagram forecasts end 
to decline in spirits 


: i M : !• j : j => : fl ■ c \ . : 3 ; 


SEAGRAM, the world's largest 
drinks company, believes the long 
decline in North American demand 

for spirits haw finally pndml 

However, the company Is con- 
tinuing to stress expansion in the 
premium wines, coolers and liquor 
markets in Europe and the Asia-Pa- 
cific region where growth prospects 
are better, says Mr Edgar Bronf- 
man, ch airman. 

Seagram, which had 1986 sales of 
USS33bn and earnings, including 
dividend from Du Pont, of 
USS423.4m, or S4.45 a share, ex- 
pects a better performance for 1987, 
Mr Bronfman said after tho annual 
meeting. So far both the drinks 
business and Du Pont, the US 
chemical group in which Seagram 
has a 22 5 per cent stake, are doing 
better than in 1988. 

Seagram is actively negotiating a 
joint TWATmfachiH ng; ami marketing 
venture in coolers and wines in Chi- 
na, which ultimately will lead to 
construction of a distillery. The 


products are intended mainly for 
the tourist Industry. , 

Mr Bronfman said the sale of 
Seagram's oQ and gas subsidiary in 
Thailand ahmilrf be completed soon. 
This subsidiary, though insignifi- 
cant on the Seagram balance sheet, 
is almost 100 per cent owned and! 
has major gas potential, he said. 

Seagram's sole investment in oil 
and gas would then comprise Cono- 
co through its interest in Du Pont 

Mr Bronfman said the sale of the 
■Bronfman family's 51 per cent in- 
terest in Cadillac Faxrview, the big 
North American real estate devel- 
opment group, to JMB Realty of 
Chicago for nearly USSIJibn, will 
go through as planned. "We see no 
evidence of another bid.” be said. 

Mr Bronfman »Im stud that 
son Edgar Junior, who is president 
of House of Seagram, the compa- 
ny’s US marketing arm, would suc- 
ceed him at the head of the whole 
company “all things being equal.” 
However, he said he had no plans to 
retire at his present age of 57. 


Have your 
I ,T. hand 
delivered . . 


. . every working day, 
if you work in the 
business centres of 

Madrid 

Barcelona 

Bilbao 

Sevilla 

Madrid 

K jfJ (01)7339548 


And ask IPS For details. 
FINANCTALTIMES 



Havevour F.T. 
hand delivered . . . 


. . . every working day, if you work in the business centres of 
LISBOA & PORTO 

(2? Lisboa 887844 And ask Roberto Alves for details. 















































































































































































































































vr i ru V 3, • •*-*:»?* •'-■ 


50 


0 Financial Times Friday May El 1887 


NEW YORK STOCK EXCHANGE COMPOSITE CLOSING PRICES 


12 Mart 

High Lm Sack 
33% 20% AAR 
37 21% ADT 

15% AFG 
*6% AGS 
6% AMCA 

*o 
a % 


a 

a? 

03% 


bill 


AM 
AMR 

37% 35 ANR 

25 30% ANR 

11% B ARX 
73% 26% ASA 
20 9% AVX 

67 <1 AblLab 1 

34% 25 AccaWdSJ 

15% 9 AcneC 40 
6% 6% AcmeEJZa 

33» f 19 ArfaE* 3 42e 
19% 11% AdmM s 24 

27% 12% AdvSys62i 
27% 12% AMD 

543, JS3a AMO pi 3 

HP* &’« Aoooa 

AdoS pf 154 94 
Adob cJ240 12. 

Aflvest 12a 
A«mU 376 


+ % 


OTgc 

P / SZs Qua Pin 

Orv. Yta. E IDBsHigh law tassOon 

JO 1.7 20 toe 29% 29 29% -S, 

.92 3 0 17 163 30% 30% 30% +% 

.16 .7 II 253 24% 23% 24% 

21 37 41 40, 41 

3 77, ~ 

969 6% 

11 4005 55% 

pi 267 11. 6 » 

pi 212 91 1 23% 

5 12 73 1C% 

2a 3.3 1164 63% 

IS 84 3C9 17 

1 8 23 4079 57% 

21 19 852 29% 

3 -3 9 46 13% 

7 % 

207. 

15% 

IB'j 


30'; 13% 

217, ,e% 
18% 11% 
66% 53 
53% 51% 
53% 227, 

28% 10% 
5% 27, 

48% 29% 
38 18 

12 7% 

20% 16% 
17-32 % 
10% 87, 

106% 95 


7% 77, 

6 % 6 % 

53', 54 - 

0247, 25 _ 

23% 23% + 
10 % 10 % 

61% 61% -2 
167, 16% x i ( 
58% 563. +1 
23% 29% ■*% 
12% 13% 

7% 73, 

20% 20% 

IS 1 , 15% 

. 18% 18% + >, 

3091 2C% 20% 20% +% 

12S 51% 51% 51% 

233 9% B% 9% 

4 79% 19% lB% +% 

IS 20% 20% 20% +i, 

0 10 504 14% 13% 13% +1 L 

4 9 9 2585 57 56% 56% + % 


4 1 30 25 
16. SO 
1.6 11 6 
3.4 14 


5.6 


27% 13% 
22% 13% 

55% 347, 
46% 27% 

31'- 13% 

517, 3? 

42% 22% 
50% 34% 

99% 65% 
24% 11% 


9 % 

39 

263, 


AetL aOB 1e 5.4 SO 52% 52% 52% -% 

AJlIPtj s 32 .8 26 423 50 48% 40% -1, 

Ahmare86 4 6 6 5254 19% 18', 19% 

Alluen 114 4% 4% 4% 

AlrPrd SO 1.3237 833 43% 4T% 42% +% 

AlrWrt .60 1.7 13 3*9 347, 34% 34% +% 

Airgasn 125 11 10i. 10% +% 

Airtw nl 03a 6.1 47 17 16% 183, -% 

A] Moan 22 1332 % 13-32 

AlaP dpi 87 8 8 125 9', S3, 97, 

AlaP pi 9 9.4 210 56 96 96 — \ 

98';' 83% AlaP pi 028 9.4 zSO 68% 88% 88% -% 

277, 14% AlskAir 16 3 13 162S 19% 19% 19% +% 

1.1 28 46 22% 21% 213, -% 

1.3 23 38 18% 18 18% +1 2 

2.0 16 4155 49 463, 47% 

13 15 5971 42% 41% 41% -i 2 

11 26*2 28 28 

£6 17 352 48% 47% 48% +% 

19 30 2411 25% 24% 25% -% 

45 67 47% 471, 47% + 

14 135 94% 93 941; +% 

325 17% 17% T7% -% 

23 16% 16 16 -% 

81 etP, 80 80% -3, 

2474 27% 271, 27% +' L 

70 10 734 39 38% 38% 4% 

1.4 22 94C3 727, 70% 70% -% 

34 70 163, 16% IS 1 ; 

6.0 1 21% 213, 213, 

10 82 35 34% 34% 4-% 

40 12 2767 4«J% 40 40% f% 

70 261 8% 8% 6% 4-% 

408 3i, 3 3 

32 3C% 30% 30% +% 

S3 IS 75 38% 3S 38% -% 

1-20 £5229 5016 491, 48 48 - 7, 

34 4406 21% 21% 21% -% 

7.1 4 42 42 42 

14 3073 38% 35% 35% -% 

£2 1 1563, 1553, 155% -11, 

575 40% 38% 383, -3, 

45 13 3388 *21, « 42% -% 

6.7 6 313, d3i% 31% -% 

21 1 “• •" 

36 17 II 
24 17 65 
99 69 

16 . 6 

S3 11 28 

66 

£5 18 1275 £6% 

2 43% 

8.7 9 3828 26% 253, £57, 4-% 

267, AE/p 3 76 £3 12 1813833% 32% 33 4-1 

10 AFaml s 32 £18 2139 10% 10% 10% 4-% 

308 


Aioerto 24 
AiDCuUO* 
Albrsns .96 
Alcan .80 
Alcan an 
AicoSfdJB 
AhnAlx 1 
Aleidr 
AltogCp 
Algint 
A I gin pr 
AJgl pfC 
AlgLudn 

36% AllgPw2_92 
48% Allege 1 
14% AllenG .56 
Allen pH 73 
AifdPd 
AJdSgnl BO 
AlldSop 
AlinCn 
AfaC pf 
ALL TL 2.04 
32% Alcoa 
10% Arnax 
32% Am ax pf 3 
37% 16% AmHea 

160 82% AJHes pf350 

43% 9% ABrck g 
S3 40% ABmd 52.03 
34% 31% ABrd p 12.75 
106 827, ABrd pf£67 

28 21% ABIdM SO 

33% 23% ASusPr 60 
25% 2tT, ACapBfl-20 
35% 293, ACapCS.B2e 
ACMfl la 
ACernC 
ACyan 210 
AC van w 1 


ZD's 
91% 

25 % 

53 % 

743, 

24 

ZF, 20% 
451. 31?, 
49% 383, 

10% 6% 

5% 2% 


37% 

47% 

52 

24 % 

45 


25% 

35% 


24% 14% 

7% 27, 

96% 89% 

49% 34% 


31% 24% AElPw £26 
40 % 

16% 

34% AGnCp 1 25 
14% AGnl wl 
15% AHIIP n£2e 


85% 65% 85% -% 
25% 25 25 

28% 28% 28% +% 
22 % 22 % 22 % +% 
31% 31% -% 
16% 167, +!, 
3% 3% 

85% 85% -% 
43% 43% +% 


31% 

167, 

31, 


463, 

24 
20 
48% 38 

9 % 6 % 

24 183, 

047, 71% 


1.4 

3.1 a 


92 


AHerl 1.44 
AHoMI 
A Hoist pi 135 
A Home3 34 

101% 77% Amrtc s 5 
82 547, AlnGr a 25 

20% 13% AMI 

•D, 2% Am Mol 

38 22 AMolr pf£38 

421, 201; APresd 00 
79% 48% APrsd pO. 50 
19% 11% ASLRa 
24% 10% ASLFI pt£ 19 

12 7% ASflrp .40 

51% 36 AmSld 1.80 
71% 51% AmSlor 04 
81 63% ASlr p(A438 6.0 

61 54% ASlr pfB&80 1£ 


10 


277, 221, AT8T 120 
521; 4F Z AT8T pf304 
51% 32% AmWlrl28 
257, IF, AWtr wi 
131 85 AWat pri.43 

13% 9% AmHotl 
44% 20 ATr sc 
124% 104% ATr un 627 5.7 
35% 22 AmeroftSB 
33% 19% AmesDpO 

3ST, 23% Ametek 1 
12% 10% AmevSOjOB 
33% 2t% Amfac 
34 25% Amlac pf10S 

5% 1% vJArtdsc 

69% 54% Amoco 320 


3678 38 35% 35% 

159 147, 14% 14% +% 

345 15% 15% 15% -1, 

2 461, 46 46 

56 8% 8% B% +% 

1 21 % 21 % 21 % 

42 15 2582 SO 79% 79% +% 

64 10 1642 791, 78 78 +1, 

.4 13 2560 627, 613, 82 % -1-1% 

.72 4.1110 1122 16 17% 17% 

6407 4% 4% 4% 

60 2283 36% 36% 36% -% 

13 21 1345 397, 391, 39% +% 

4.8 52 76 76 78 

2 127 14% 133, 133, -% 

11. 77 20% 20% 2D% 

5J 39 7% 7% 7% “% 

4.8 0 1583 39% 38% 38% +1% 

10 17 250 66% 65% 65% +% 

7 73% 72% 73% +% 

3 557, 55% 557, +% 


4.7 21 185605% 25% 25% +% 
72 125 50% 50% 50% 4% 

3.3 11 130 333, 377, 39 1 , +13, 

17 19% 19% 19% +% 

ZlOO 97 S7 97 -5% 

346 12% 12 121, + % 

2 32% 32% 321; 

5 110% 110% 110% + 1%l 

£913 200 33 33 33 

0 30 1250 22% 21 22 +1%, 

3- 3 18 136 31 30% 30% -% 

9.9 77 11 W, 1C', 

191 287, 28 28% +% 

6.1 14 31 303, 30% -% 

127 3 27, 3 +% 

4.0 31 3685 831, B1% 82% 

58% 327, AMP BO IS 32 £199 543, 54% 54% +% 

16% 12% Am poo JO £1 68 147, 14% 14% 

11 119 12% 12 12% 

37 10 31 32 31% 313, 

53 658 8 7% S + % 

1-0 2922 2F, 27% 29 +1% 

49 1221 22% 21% 21% -% 

A 12 808 20% 20 20% -% 

4- 9 36 682 301, 30% 30% 

£4 14 310 25% 24% 24% 

It. 55 14% 14 14 -% 

1.6 18 9031 31% 30% 307* +% 

141% 63% Anheu pr3.60 3.1 582 119 118 118 -% 

18% B% Anthem 40 185 17 16% 17 * 1% 

15% 8% Anlfmys.44 31 33 13 141, 14 14 +% 

83 46% Aon Cp £40 5.1 7 1098 47% 46% 471, +% 

12% 7% Apache .28 2 6 330 11 10% 107, -% 

' ' ' “ “9.2 211 7% 7% 7% 

90 a90 82 d32 82 -1 

13 14 28% 28% 28% 

29 94 35% 34% 35% +7, 

5 12 2896 19% 19% 19% +% 

.6 14 4039 281, 26 Z77, +2 

ArIP pf 6e 6.6 350 90% 90% 90% -% 

ArfcBsts .36 £2 10 191 16% 15% 16% +% 

Arid, UK 4.B 18 2962 23% 23% 23% 

51 48% Arklo pf 3 31 26 49 48% 49 + % 

12% 4% Armco 1114 U 12% 11% 117, +% 

~ ‘ 8.0 23 23% 23% 23% 

£8 13 879 347, 34 34% +% 

2A 88 19% 19% 193, +% 

184 6 5% 5% -% 

14. 27 137, 13% 13% “% 

S 28% 28 28 -% 

.68 £0 14 209 347, 34% 34% -% 

1412 26% 26 281, 

52 42 44% 43 43% -1% 

2S U 1104 62% 62 82% +% 

303 9% 9% 9% 

ID 152 107, IF, 10% -% 

8.6 37 26 19% 18% 18% -% 

7011 73 34% 33% 33% -% 

4.7 £8 4875 671, BS 85 -1% 

1.3 2 2081; 207% 200% -4% 

89 24% 24% 24% +% 

13 3S8 F, 57, G ♦% 

1.7 41 1100 24% 23% 23% +% 

1.6 11 483 20 191, 19% -% 

0 26 1482 44% 43% 43% +% 

36 33 5% 5% 5% -% 

1 2 14 16 43% 431, 43% -% 

19 399 23% 22% 23% +% 

1.6 74 1228 32% 31% 31% -% 

2 6.0 13 1646 30% 29% 29% -% 

18 54 34% 34% 34% 


23% 11% Am reps 
38% 28% AmStfi 1.18 
9% 2% Anacmp 

31% 18% Anedrk 00 
23% 14% Analog 
247, ipi« AnChGS .08 
35 24% Anchorl.48 

29>, 22 Angelic .64 
16 13% AngtCm1S2 

38% 23% Anheu s .46 


147, 6 ApcP un .70 

101% 83 ApPw pffl 12 

3i% 28% ApPw pt3 60 

40% 12% AppIMg 

Arch Dn 10b 
Ansa n.l8e 


60% 40 BontnH.28 
49% 25% ScrgWs 1 
46% 45% Sar B W«d 


wl 

12 Mart ? t Ss Den Pro 

High lm Suck Dw. W. E 100* Hlgb Low Quae Get, 

23% 141; BlackD 40 1 7 37 4356 u23% 23% 23% *■ 

28 19% BlkHC ,100 5.6 13 248 21% 21% 21% 

58 37 BlkHR 1A8 3.0 24 TS3 50% 49% 49% +1'i 

IF, S3, BluChpn 73 9% B% 

647, 42% Boeing 1.40 33 10 4311 43% 42% 

8F, s,.j BertseCl 90 £9 IB 1727 68% 65% 6F; -% 

88% 48% Boise pfCSsO 31 210 58% 57% 573, -% 

597, 367, BoltSer lfl 2 29 108 44% 44 

£4 17 5722 54% 52% 53% +% 
£2 19 474 46% 46 46 + % 
156 46 457, 40 

12 8 
20 

8.4 8 

0.3 

9.5 


25V 

r- 

103 

17 

43% 

<2 


16% 

w% 

20% 

94 

» 

23% 

31% 


1Tt% 671, 
5S«, 33% 


B0rmn&20 
BGelts n 3Se 
Bo$£ds1.78 
Bose pffl 88 
BosE prl 46 
Bovratr 80 
BrigSt 1.60 
BrwM £80 
BrstM wl 


17 17% +% 

13% 133, 

203, 21% 

95 95% -% 

15 IS, ♦ 
32 32% — % 


29% IF, BfAir pp 
19% B% BrGas pp 


2F, 2F, 
71% 33% 
32% 28 
IF, 71; 
», 

443, 


BGss2 do 
B rltPt 202e 
BnlTel 109e 
Brocx n 
11-16 Brock p I 
22 Brckw s 06 


47 47 - % 

24% 24% ~% 
ITT, 17», 

2F, 26% 

677, 711, +17| 


107 T71, 

92 13% 

367 21% 

2270 96 
69 15% 

£5 22 1544 3£% 

4.B 19 159 33% 32% 33% + 1 
30 22 2845 95 93% 93% -% 

72 47% _ 

1022 2S% 

2502 18% 

45 28% 

3.7 14 6829 u73 

20 16 299 48% 487, 40% -It 

5 27 10 9% 10 ▼% 

450 «, 1% 1% -% 

£4 16 133 41% 403, 40% 

60 14 1017 27% 263, 263, -% 

2 a 17' 20% 20 20 

4.1 17 293 37 36% 38% -% 

25 6716 26% 25% 26% +% 

I. 4 15 2481 437. 43% 43% +3, 

14 30 652 40% 39% 33% -% 

9.7 10 486 23 22ii 223, - % 

3.7 12 2 25 £43, 25 +% 

II. 29 19% IF, 19% - 

8-9 14 91 IS 16% 19 

16 284 28% £B% 28% +1; 

£2 36 24543U7S3, 75% 75% +2'| 
£8 18 3694 697, 68% 69 +% 

6.1 5 9 F* 9 +% 

19 33 16% 15% 16% +% 

c c c 

23 7 , CBI (n 00 £1 39 362 2F, 28% 28% -% 

50 CBI pf 89 52*2 52% 521; +% 

121% CBS 3 10 16 474 isa 157 157 +% 

159 4% 4 4% 

3792 58% 571, 57% +% 


2F, 221, BklvUGI .66 
28% IF; BwnSh .40 
4 2% 31 BnwiGp.50 
313, 17% BrvmP s 

49% 2F; Bmswk .60 
44% 25% BrsnWl 56 
24% 19% BuckejuSJO 

207* 21% Bundy .92 
2F2 18% BunKrTB.16 
21% 173, BKInv 108 
34% IF* BurinCt 
73% 323, Burundi 04 
77 4F; BrlMh 2 

9% 77, BrtNo pf 05 

19 1 1% Bumdy 


28% 28% 28% 

76 53% 53% 53% +% 

134 1% 1% 1U +•% 

277 5*; 431* 49% -% 

112 12% 12 12% -f-% 

301 23% 23% 23% 

21 26% 26% 26% 


40 

33% _ 

71, 7% 

IF, 01; 
42 28% 

1Z% S'* 
41% IF; 
34% 147, 

2) 6% 


33 
54 
T71 

5% 37, " CCX 

6T, 51% CIGNA 200 4 9 7 

34% 28% OG pf £75 9.6 
62 529, CK3 pi 4.10 7.7 

2% 11-16 vfCLC 

66% 4T% CNA Fn 9 

14% 11% CNAI 124 10. 

27% 16% CNW 9 

29% 23 CNW pf£72 8.0 
543, 28% CPC s 124 20 18 2690 45% 43% 43% -1 

39% 277, CP N0 1.60 5.4 10 67 29% 29 29% 4- % 

24% £0 CRIIM 301 e 17.10 84 20% 20% 20% -% 

21% 177, CHI lln£92B1& 53 18% 16% 18% +% 

OH, 13 CRS8 2A 1018 33 W, 19% 19% -% 

35% 25% CSX 1.16 3 6 12 2317 32% 31% 32 ♦% 

41 24% CTS 130 32 2F, 25% 26 +% 

15 7% C 3 Inc 60 40 107, 10% IF, *% 

£5 16 177 36% 36% 36% +% 

19 6051 33% 33 33% +% 

7163 7% 7% 73, +% 

ft 91 9% 9% 9% -% 

30 4 1544 32 31% 31% +% 

9.1 20 6% F; 6% ♦% 

0 80 787 35% 33% 337, - 1% 

10 11 229 27% 28% 27% -% 

11 5033 9 71; 9 -Mi; 

£ 10 16% 18% IF, +% 

34 861 31% 297* 30 -2 

1 242 2% 2% 2% 

£3 17 385 62% 61% 61% ~'l 

20 2380 177* 17% 171, -% 

8 1288 5% 4% 5 4-% 

.1 27 FI 33F; 331 332 +3»; 

3.0 6 1476 30% 29% 29% 

50 104% 104% 104% + % 

1 13 13 13 

3.1 17 66 35% 35% 35% +% 

18 416 6% d 5% 6% 

10 13 1® 34% 33% 337* -% 

01 9 2799 34% 34 341, -1, 

4.6 46 69 48% 45% 46 4- % 

1.6 20 2836 1*45 41 43 +2 

£0 44 457 61% OF; 60% 

0 20 296 81 86 86 -1% 

0 5 101 12 117, 117, 

07 78 91 15% d14% 14% -% 

33 529 22% 22% 22% 4-% 

30 8 23% 23 23% +% 

27 931 203, 20% 20% 

10 3805 517, 81% 51% +% 

608 9% 9% 9% 4-% 

26 387 9% F; B% ~% 

4.4 15 407 57 557* 563, + 1 

15.5 5189 IF, 16% 16% +% 

0 11 177126% 26% 2S% 

70 8 2978 29% 28% 29% 

1£ 6 244 26 25% 25% -% 

70 11 B41 22% 21% 21% -% 

70 9 40 2F, 29% 29% -% 

13. 7 317, 31% 31% 4-% 

05 11 15B IF; 153, IF, +% 

7.7 6 33 24% 24% 24% -% 

372 4% 4% 4% “% 

5.4 11 141 10 15% IF, 

11. 10 33 20% 20% 20% 4-% 

2-B 11 72 38% 357, ge 4-% 

10 M 8086 35 34 34% -% 

1488 14% 13% 14% + % 

CbanC 3 Z71 5 47, 47, 

Chase £16 &9 6 4130 3F* 35% 36% +1% 

Chase pf7.60 7 8 1 97 97 97 - 1 

Chase pf52S 90 15 S3 62% S3 +% 

, Chse pM.lSe 70 1068 52 51% 52 -% 

53% 4F; Chse pO0le 70 166 49% 48% 4S% +% 

25% 10% Chain n 10 453 117, 11% n% 4-1, 

343, 23% Cheteee.72 3.1 11 28 237* 23% 23% -% 

43% 29% ChemeCflO 40 9 41 35% 347, 35% +% 

537, 395, ChmN1£72 60 6 “ 

8 7 CUNY B.19e 2.6 

11% 11% CNY pfC.IS* 1.3 

53% 51 CUNY pf3.75e 72 

35% 18 ChWst n.02e .1 49 


27% Cabal 
15% Caesar 
Ceesr wl 
CalflPn 1 
Ca<Fed1£0 
CalRE 00 
Callhn 20 
Carmats.40 
Caltan n 
Cammi .04 

34% 14% CRU g .40 

Fa % CmpR g 161 
70% 503, CamSp 1.44 
19% 10 CdPacs .48 
45% 41, CanonG 
369 228% CapCiUJO 

3F, 26% CepHfd .88 
106% 102 CapH p16 75e 60 
14 F* Caring g 48 
3F, 26% CarbSIB.IO 
9% 6 Car olP n 

42% 311* CaroFl .50 
427* 30% CarPw £76 
48% 28% CarTec£l0 
41 30% CarPlr .70 

30% CanHwl£2 
CartWI 00 
CanSvn 07r 
CascNQ28 
CasOCk 

CstfC pf 00 

Cadysl 
Caierp 00 
CedrF n 
Cengy 


64 

151 

213, 

m 

24% 

243, 

29 

571, 

10 

10 


58% 

% 

14% 

18% 

16% 

36% 

9% 

"s 


88% 51% Cereal 200 
27% 15% CentBOS6 
40% 28% Cemex £5 
40% 28% CenSoV28 
3F, 21% CenHuO06 
303, 21 Cnl IPS 1.72 
38 29 CnLaEG-08 

38% 31 CUS pH.18 
20% 15% CeMPwl.40 
31 23 CVtPS 100 

F, 4% CererCp 
19% 14% CmryTI 06 
Z1% 171, Cemrlll 220 
41% 24% Crt-taed 1 
43% 22% Chmp*n04 
14% 8% ChamSp 
81 * 2 % ‘ ' 

45% 34 
101% 91 
57% 51% 

54% 611, 


23% 16% 

31 17% 

93% 80 
30% 15 
25% 17% 


25 13 Armc pf£10 

44 24% ArmWls0O 

21% 13% Armtek .48 
12% 3% ArowE 20) 
24% F, ArpwEpfl.94 
32% 20% Artra 
39% 22% Arvln 
283, 10 Aaarco 

49% 24% Asarc F£25 
6F; 53% AsmOU10O 
AslaPcn 
AialSon 
AdUond.GO 
AlCyO £62 
AURicn 4 
AtlRc pr£80 
AttesCp 
AudVd 
Augat .40 


11% 9% 
15% 9% 
21% 15% 

46% 33% 
94% 45% 

224% 109 
273, 11% 

13% 5% 
25% 15 


31 17% Airalmt .32 

51 29 AwoDta 38 

8% 3% Avalon 

46% 25 AVMC 00 
2F; 18% Avery s 

38% 25% Avne! 00 
36% 26*. Avon 

37i; 17% Aydin 


B B B 

B% 4% BMC 31 7% 7% 7% -% 

40% 23% Balmco.70 10 15 73 3F, 36% 3F* +% 

23% 157, BkrHu n.46 £3 2589 20% 19% 20% +% 

24 17% BaMor .44 22 19 37 20% 20% 20% *% 


45% 34% Ball 


0220 16 356 41% 40% 407, +% 


_ 34% _ 

23% 14% BallyMI^ai 1.2 21 1252 17% 1G% 17% ■*% 


39', 26% BaftGEl.90 
30% 22% BncOna02 

1% % BanTax 

65% 371, Bandge £0 
34% 23 BkScS 1 


52% 47% 

32% 48% 
98 82 

483, 37% 
171- 9% 
40% 26 

71% 44% 

13% 7% 
337* 29 
521; 41% 
253, 15% 


BkB plA3.01eS8 
BkB pfB3OTe50 
BkB pfC051e50 
BkNY 9 108 4£8 

SnkAm 

BkA pQ£4e 10. 
BkA pf 6e 11. 
BkA pf 203 
BkARly£40 
BnkTr sl.06 


B 3 9 1781 30% 29% 3 0+1 

30 10 1384 24% 23% 241, +% 
1706 13-16 11-16 11-16-1, 
1.1 20 210 61% 61% 61% +S§ 

3-2 8 1418 32 31 31% +% 

II 51% 51% 51% 

395 51% 51 51 

2370 94% 94% 94% 

135 39% 38% 39% +% 

4265 11% 11 11 

33 32 »% 32 +% 

S3 52% 68% 52% +% 

»7 8 % 8 % 8 % +% 

00 13 113 30% 29% 2Q7, -% 

3.7 7 2001 45% 43% 447, -4-1% 


Banner .06 J 11 33 21% 21% 21% +% 

39% 2F- Bardy n1.48e 40108 1176 36% 36% 36% -% 

50% 28% Bard AO .9 23 1158 43% 42% 42% +% 

34 14 75 35 34% 35 +% 

£6 II 682 30 35% 35% 

3 3 20 27 1B% 18 18% +% 

1.9 78 7% 71, 71, 

£1 18 855 42% 41 41% +% 

£0 11 4499 22), 22% 22% +% 

113 48% 48% 487* 

50 78% 77% 78% +% 


40% 30% BamGd.20 
407* 31% Samel* .02 

24 14% 8aryWr.60 

11% fl', BASIX .141 
49% 33% Bausch 06 
26% 15% BaxtTr .44 
499, 44% BjrtT plA£92e6.0 

8F; 50% BxtT p483M 4.5 


33% 213, BayRfl £0 
30% 2F; BaySGal.52 

23% 14% B&arSI 486 
40% 31 Bearing 1 
16 S3, Becor £0 

86% 45% BectOk .74 

13, 5-32 vj Baker 

51% 35% BelHwl 62 

77 60% Be HAH 18« 

33% 24% BCE fl £40 

2F* 16% Belflnd .32 
« 34% BaflSos2£0 

06% 49 BatoAH 00 
36 23% Bern ta .72 

78% 44% BenfCp 2 
62 46% Ben ef pM.3fl 92 

62 47 Benef piASO 9£ 

351 204 Benef p!50O £6 

38 243, Benef p<2-50 90 

9% 3% BengtB 

7% 27, Berney 

IF, 8% BestPd 
17% 4% BefhSU 
46% 12% BethSipf 

24 % 8 % " " " 


£ 64 26 22% 22% 22% + % 

50 11 T2 27% 27% 271; +% 

3.1 7 1118615% 15 151* +% 

£7 21 78 37 38% 37 +% 

10 SB7 137, 13% 13% -% 

10 19 3610 55% 53% 55 +3 

174 13C2 13-32 1332 

10 IS 915 4Fi 48 401. 

02 10 2907 83 01% 61% -% 

a 468 30% 30% 30% -% 

10 58 1 21% 21% 21% 

6£ 10 4785 35 35% 35% 

1.4 19 18 58 57% 58 +% 

£2 17 36 321; 32% 32% ~% 

4£ 1043 48 471* 47% 4-1 

2 4F; 46% 46% -% 

zSO 40 4S 48 

Z10 213% 213% 213% 

2140020% 26 26% — % 

1056 8% 7% 77, -% 

25 5% 5% 5% +% 

245 9% 9% 9% 

1860 15% 14% 14% -% 

553 3F; 38 36% 

272 IF, 17% 18 +% 


_ _ . SethS pfB 

22% 13% Bevrfys 20 1-4 20 3196 14% 14% 14% +% 

29 20% BeviP n2.17o 80 13 15« 22 21% 31', +% 

24% 11% Bibfft 48 327 19% 19% 19% 


ChWst n.02e 
48% 25% Chapk s 08 
61% 34% Chevm£40 
149 128 CMMIw 

647, 56% ChIMI pf 
52% 26% ChlPac05e 
12% 77, ChkFuH35t 
27 17% ChrtoC»071 

42% 22% Cbrys s 1 
78% 53% Chubb 1.88 
18% F* ChurchOG 
7% 4 Cttyran .12 

43% 31% Cllcmp£34 
25 18% CinBelS 

31% 217, Onffi £16 
55 47% ClnG p»4.7S 9.7 

1037, 671; CmG pi 930 99 


2097 41% 40 41% +1% 

609 7% 71, 7i, +% 

460 11% 11% 11% 

18 52i 2 52 52 -% 

1181 31% 30% 31 +% 

£2 20 51 40 39 39% -% 

4£ 36 6454 57% SF; 56% +% 

11 20 u!51 148 151 +4 

44 63% 50% 63% -% 

.1 16 105 45% 44% 45% +% 

4.4131 40 77, 77, 77, 

10 37 871 25% 24% 25 +2% 
£9 6 1631335% 34% 34% +% 

20 9 646 Sa ST 571, 4-% 

4.5 31 1820 10% 10 10% 4% 

2.0 24 SB F, F, F, -% 

7.1 10 55 33 32i, 32% 

13 68 23 21% 23 41% 

00 7 1671 24% 23% 24 — % 

ZlOO 49 40 49 -1 

Z7Q 95 933, 63% -23, 


103% 92% ClnG pf 128 9 6 zWO 95 BS 95 41 

33% IF, ClnMIf .72 £3 32 624 317* 30 311, 4-1% 

13 617 13% 13% 13% 4% 

£1 14 680 13% 127, IF, 4% 

£ 21 393 34% 33% 34 4% 

26 938 25% 24% 25% 41 

40 8 2635350% SF, SO 427, 

00 1 75% 75% 75% 47, 

90123 104 7% 71, 7% 4% 
0 29 2722 117, 10% 11% 41% 
373 2fi% 28 25% 4% 

15 293 9% 9% 9% 

204 IF, 13 IF, 4% 

1£ 5 18% 16% 16% 4% 

11. z230G7% 87 671, 4% 

3.4 IS 1468 52% 51% 51% 4% 

12 36% 28 26% 4% 


14% 13% CineOch 
18% 127, OrdK s £8 
41% 18% CliCiy e 06 
26 14 Circus s 

63% 47% Cmcrp £70 
90% 74% Clop pf 6e 
6% 6% Clablr .72 

16% F, ClMrSt .10 
2Bi, 15% CterkE 
16% 8% CtayH s 
15% 0 OvCM 
20 10% ChrCI pf 2 

61 GO CIvS p!7 40 
65% 45 CforoK 1.78 
32% 22% Cl Ora* wl 
31 21% ClubMd 20 

20% 9% CaechnMO 
19% 11% CoastSL 

15% Coast! s AO 


30 28 x262 10% 10% 10% 4% 

4 15GB IF, 15% IF, 4% 

3F, 15% Coastl *00 1.1 12 1274 35 34% 347, -t-% 

36 249, Csd pi £11 6.1 100 34% 34% 34% -% 

49 32% CocaCUI.12 £9 16 1145739% 38% 38% -% 

18% 137, CocCEn.03e £ 44 3420 17 10% 1S% 

20 8% Coleco 406 IF, F, 10 4% 

30 17 456 34% 33% 337, +1, 

3£ 16 3287 43% 40 42% 42% 

7.7 Z210 56 55% 56% -1% 

0 63 121 20% 20% 20% +% 

0 200 9% 9% 9% 

18 257 14 3 

6815 701 47% 

10 4 55 

£7 2 799 103, 


137, CocC£n.03e 
8% Coleco 
44% 30% CotemrtiO 
4F, 35% CofgPalJB 
87 53 CotgP pM-25 

23% 14% CalRH .12 
10 F, ColMun.OSe 
15% 9% Coll n 
SF, 37% Ca)Ga*3.18 
60 54 CofGa p&46 

IF, 9% CohjmS£B 
16 9% ColSv pi 

29% 27% CSO pi 345 12- 
28% 24% CSO pf £42 90 
11F; 112 CSO pi 0102513. 
118% 112 CSO prn15£5KL 
40% 27 CrebEn 1 
16% F, Comma £0 
33% 1B% Cored la £0 
27% 13% CCred n.12e 
21 14% CmMUa02 

15 5 Comdra 

38 29% CmwC 3 

23% 19% CwE pr 1.90 9.3 
24% 20% CwE pr 2 66 
103% CwE pf 12.75 II. 


93 CwE plBB.40 02 
F% CwE pi 638 90 
26% 24% CwE pr£37 90 
29% 26% CwE pf 2.87 10. 

CwE pi 840 11. 
86 72% CwE pr704 10. 

45% 32% ComES2.72 64 8 
CmwMn la 
37% 23% Corns** .20 
43% 27% CPsyc M 
Compaq 
CompflcSO 
CmpAss 
CompSc 
CmTafca .05 

10% Cpmn 
2«% ConAgs 08 
ConnE 108 
24% W% ConnNCUO 
Conrec .40 


5F; 11% 
24% 15% 

28% F* 
61 29% 

18% 11% 
231, 

34 
27% 22 


X IF, 

16% 10% Canseoi 
S3 7 * 40 Cor8E(£96 

_ SF, ConE pW.65 
65 52% COnE pi 5 

38% 271, CnsFrt .90 
Ccnswajo 
Cnreil n 
CnSnrs 
Conors 04 
COnsPw 


427, 25 
34% 28% 
23% F, 
307, IB 


9% 


20 
52 
63 

84% 63% CnP 
" 63 CnP 

30% CnP 
32% 27 
32% 87 
84% 94 
31% 28 
31% 27% 

17% 


25% 


37% CnP 
OF; CnP 


CnP 

CnP 

CnP 

CnP 

CnP 

CnP 


pfB480 99 
PID7.45 10. 
PK7 72 1ft 
ptG7 7B 10. 
prV440 14. 
prU360 12. 
p>T3.7B 13. 
plH708 If. 
prP308 13. 
prN305 13. 
prt££3 90 


IF, IF, +% 

48% 48% +% 

55 55 +% 

ID IF; 

98 10% 10% 10% +% 

1 28% 28% 28% 

Z 2F, 28% 2F, -% 

*70 113% 113% 113% 

Z30 114% 114% 114%+% 

30 23 1048 35% 33% 33% -1% 

10 24 170 IF; 15% 15% 

J 16 2155 29% 28% 28% -% 

0 24 2082 24% 237, 237, +1, 

I. 7 1* 13 18% 18% 18% 

14 428 87, 95, 8% +% 

£1 7 9039 33% 32% 327, 4-% 

5 20% 20% 20% +% 

10 21 20% 203* -7* 

*410 113% 111% 111%-% 
*70 1021; 102% 102% + 1 
*10 85 85 85 -1 

1 25% 25% 25% -% 

14 27% 27 27% 

267 79% d79% 79% -F| 

2320 72% d71 71 -2 

35 33 (132% 32% 

II. » 329 9 F; 8% ■+% 

49 8 376 24% 237* Z, 1, +1, 

10 20 659 36% 36% 38% -% 

25 4053 46 44% 44% +% 

20 41 33 21% 21% 21% f% 

34 1434 29% 25% 25% +% 

24 2291 50% 401, 50% +% 

0 23 114 16 15% IF, +% 

61 3087 157, 14% 14% -% 
£2 15 1871 SF, 25% 26 +% 

8.9 13 2 24% 24% 24% 

67 12 28 19% 19% 19% +% 

10 23 17 37% 27% 27% 

8 4317 15 147, 15 +% 

72 9 2180 41% 40% 4T% +1% 

60 *155055 54% 54% -% 
9-2 18 54% 54% 54% +% 
£7 14 585 33% 32% 32% 

30 19 513 40 39 39% +1 

10 6837 30% 30% 30% -% 

23 2345 10% S% 10% +1 

£2 21 145 29 28% 29 +% 

21 910 18 17% 177, +% 

7160 45% 45 45% +% 

Z450 72% 72% 72% 

2160 74 7F; 74 +% 

210 74% 74% 74% -1% 

3 32% 39% 32% 

17 30% 30 30 -% 

14 29% 28% 29% +% 

*510 73% 73 73 -% 

12 29% 29% 29% +% 

3 90% 30% 30% +% 

30 22% 22% 22% 


1? Mart 
High Law 
32% 283, 
25% W, 

Si % 

7?, 4% 

15-18 % 

M 71, 
35 23 

56% 37% 

V, 6% 

14% 11% 

% 


Wg* 

P7 Sh 

Suck Dir TMl E lOOsMgb lew DmOm 
C nP p/S402 13 3 31% 30% 31% *'l 

CnP prK2<J 10. 1 24% 2<% 24% -% 

Comef 2 73 9 1346 277, dZ7%27% -% 

03 7 1109 41% 41 41% -% 

10 74 7B9 49, 4% 43, 

110 5-16 9-32 5-16 +H 

11 208 T1% 11% 11% 

1137 31% 31 31 

ZlOO SO SO 50 4-7, 

381 7% 7% 7% 

230 11% 11% 11% “% 

47 % 9-18 H6 -1*' 

30 18 US 55% 54% 55% *% 

10 13 95 34% 34 0«% 

£7 4 1571 15% 14% 15 

87 9% 8% 9% 

11. 24 22% 22% 22% 

43 19 67 15% 143, 15 ■'■% 

£4 15 629 50% 59% SF, -% 

31 11 153 27% 27% 27% +», 

£ 105 8% d F, 6% 

20 B 1748 11>, 11% 11% -% 

10 6 335 IF, 11% 12*, +% 

17 36 IF, 16 IF, +! 

3.1 11 T22S 3F, 38% 3F, 

26 8108 110% 102 102% “8 

3.010« 18 42% 42% 421, 

14 196 111% 10F«7J0J, + W, 
2B 256 20% 2F, 20% +% 

£1 18 5 39% 3F, 3F< -% 

499 107, 10% 10% +% 

£5 659 89% 88 BF, -% 

5£ 325 u68 87 67), -»« 

90 47 IF* 12 IF, +-I 

£7 13 1 BO 60 BO 

10 17 12 94 S3 7 * 9F, 

□ 

<3% 43% 43% -% 


CnBCfl 280 
Ccmni 06e 
CuiHJd 
CniBnto 
CtOou 

CnDt gf 4J0 90 
ConvHid 

CnvHd pfl JOe 11. 
vjCoohU 

60 3S% Cooper 1 68 

37% 21% COprTr 44 
26% 14% Ceopvls 40 
9-% 5% Capwia 

22% 16% Cpw*d pf£48 

IF, 11% Coral n 64 
75 46% ComGJ 1 40 

43% 26% COrFfe 04 
IF; 6% CTEF n .01* 

17 1 , 9% CntCrds32b 
19% 11% CnirMt 107# 

F% 12% Craig 
4F* 26% Crane 1-20 
135% B Crayfla 
45 31% CrmpK12S 

132 92 CrwnOc 

26% 17% CryaBd 
48 377, Cotbro 00a 

18% 6% Culinet 
93 51% CumEffi-20 

671; 541; Cumn pr 3 SC 
13% 11% Curinc 1.10a 
63 51% CurrtV 1.60 

94% 63 Cydope.10 

D D 

597* 40% DCNY £20e 01 13 


29% F% DPL 206 08 8 502 23% 23% 23% +% 
20 111; DwnonCO 10 Vffl 16 15% IF, *% 

<6% 25% DanaC006 3026 3282 45 4C, 45 +% 

26% 9% Dananr 25 37 21% 21% 21% -*-% 

11 6 Daniel .18 1.7 54 10% 10% 10% -% 

42 a DaUGfl 2006 34% 3F* 3F, -% 

9% 4% Dxupl 1721 5% 5 S 

21% Datut pH 04 21. 37 23% 23% 23% +% 

a 5% DtaOsg £4 3£ 8 164 7% 7% 7% -V 

25% 6% OavWls 16 288 17 15% T7 +1% 

341, us% cay Inti .40 10 47 52 31% 30% 30, -% 

56% 3F, DaylHd 02 £1 12 4788 437, «T, 43% ■*% 

~ 73% DPL pi 7.48 10 *200 75 75 75 +% 

33% 25% DeanFd04 10 20 131 30% 2F, 30% +% 

- - - — V6 B1 IF* 10 IB “7. 

16 226 7% 7% 7% 

0 1199 30 29% 2F, +% 

70 10 143 29% 28% 29% +% 

13 19% IF, 19% 

1010 300154 53% 53% +% 

X 33 5% 5% 5% 

£5 20 3489 29% 2B% 2B% -% 

3015 94 3F; 32 32% +% 

3.6 26 304 38% 38% 38% -% 

11. S 2671 18 IF, 18 +-% 


OecCen.37* 

DIC 


19% IS 
14), 7 
33 21% 

38% 27% OaimP £12 
25% IF, DetP wi 
67% 37% DettaAr 1 
8% 4% Deltona 

42% 777, oizCh s .72 
35 24% OensM&04 

43% 34% DeSoco 1.40 
19 IF, DetSd 160 
89% 71% DetE pf768 
86% 71 De£ pJ7.45 

__ ptFZTS TO. 
ptfO£4 11. 
pf03.13 It 

pfPS.12 11. 
pfB £75 90 
pr03401£ 
PIM3.42 T£ 
10 


10 

10 


27% 25% DE 
20% 26% DE 
29% 29% DE 
2S% 36% OE 
29 25 DE 

31% 27% DE 
303, 27), OE 
257, 21% □«(£ 0T22B 
28% 177* Hesters .60 
28% 207* ChCtor .64 
29% 10% DtaBltl £0 
IF, 13% DiaSO £80 
18% 15 OSnRMl.,0 
IF, 10 DtanaCdO 
60), 35 Diebokl£3 
174% 81% Digital 
68% 35 Disney 02 
29 21 DQ 

71* 4% Onrefat 

177, «r. Dome g03e 
52% 38% DomlU206 
39% 3F; Donald 06 
7F, 587, Donley 1.40 
847* 38% Dover .92 
89 49% DowCh £20 

56% 30% DewJna.64 
25% IF, DowneiC7e 
21 13% Drava 00 

32% 14 Dreer 40 
25% 18% DrexS 106 
46% SF, oreyfsa .48 
123 73 duPort 320 
53% 42% duPnt pO50 
66 54% duPnt pH 50 

IF* 8% Duff’ll n.lOe 
52 39% DukaP 208 

10F; 93 Duke pfB.70 90 
103% 90 Duke pffl£0 90 
104 88% Duke pf70O 9.0 

106% 90 Duke pt828 9£ 
8% 6 ) t DukeRlKSe It 

138% 86% DuflSrtl 3 
15% 117, DuqU 1£0 
2F, 18 Duq pf 2 10 
23% 18% Duq 
24% 18% Duq 
26% 20% Duq 


101 73% 73 73% +% 

*120 72 71 71 

2 26% 26% 26% +% 

20 26% 26% 28% +1, 

21 277, 27% 277* +% 

6 27% 271, 27% 

12 287, 28% 28% 

34 29 28% 29 

24 29% 28% 29% +% 

18 227, 22% 22% -% 

£6 17 68 231; 23% 23% +% 

£9 22 179 22% 22% 27% +% 

12 154 IF, 15% IF, +% 

18. 222 IF, 18 18 +% 

£4 *124617 18% 16% 

£9 18 21 10% IF, 10% 

£3 22 317 527, 57% a -% 

20 120271571, 148% 148%— F, 

0 24 3602 61% 60% 61 +1 

144 6£ 21 46 231, 227, 231, *% 

12 5% 5% S% -% 

19 2690 IF, 15% 15% -7, 

7.1 9 2555 417, 41% 41% 

19 14 19 34 33% 34 +3, 

2£ 18 714 65% 63% 63% -% 

10 34 *129363% 61% $1% +% 

£7 19 9032 80% 78% 80% +% 

1.4 24 772 47% 47 47 

10 4 127 17% 17 17% -% 

3.0 33 75 Wg 16% 16% 

1.4 3779 28% Z7% 26 +% 

90 41 19% IF, 19% +H 

10 16 3902 3F« 31 32 4-7% 

£9 17 4606 110 106 108% 

7.4 1 47% 47% 47% -% 

7.8 3 58 371, 57% -% 

£1 1089 9 8% 9 

60 10 I486 42% 42 42% +% 

*873093% (292 33% +% 

2110 91% 91% 91% -1% 

zSIQCBF, dS5%B6% -% 
2340 91 90 90 

48 7% 7% 7% 

£6 25 1587 115% 113% 114%+IT, 
10 7 811 12% 1T7, 12 

2130 IF, 19 19% +% 

280 19% IF, IF, -% 

4 21% 21% 21% -% 

zl 96022% 22% 227* +% 
100 99 69 69 •+% 

20 23 22), 22% 


pf £05 11. 
prK£M 99 
pr 201 10 
pf 7£0 10 
0 


81% 66% Duq 

32% 22% DynAm 20 

20% IF, Dynctp 01 10 13 208 17% IF, 16% -% 

E E E 

38% 27% EGG 06 10 18 300 32% 31 31 -% 

IF; 9% ERC 55 29 12% 12 12% +% 

39% 29% E Syst 00 1.7 15 2318 30% 29% X +% 

S3 29% EagtoPMS 20 12 TO 4S 44% 45 +3, 

33% 24% E83tGF10O 5.1 34 1417 20 25% 25% +% 

40% 29% EasdJtaX 70 10 202 30% 90% 30% -% 

84% 52% EKodk 202 3£ 35 6500 78% 77% 7B% +% 

94 X Eaton 2 24 18 1011 85 84 6«% +% 

25% 15% Eehlifl 06 30 14 8628 17% 17 17 

31% 20% Ecolabs 08 £2 15 753 26% 20 20 -% 

44 33 EdlsBr 100- 50 >0 71 34% 34 34% +% 

14% 9% EdCmp.16 10 2D X 11% 11 11 

38% 21% Edward. 68 £4 11 1129 28% 277, 277, +% 

27% 12% Elcor .44 £0 15 23 22% 22% 22% +% 

20 14% Eldon £0 LI IS 2 17% 17% 17% +% 

6% 


14% Eldon 20 1115 2 17% 17% 17% +% 

3% ElecAa 19 4 4% 4% 4% -% 

29% 13% BctspcdK 0 37 292 28% X 26 
18 12% Elgin 11 13% 13% 13% 

1% Etecfflt 391 17, 1% 1% -% 

_ - “ t£ 58 9% 9 F, +% 

£9 17 2600 100% OF, 99 +1% 

9 3208 7% 0 F, 7% 

65 781 16 IF, 15% -% 

W 483 41% 40% 41% +% 

60 11 29 X% Xi* 30% -% 

01 12 20 21% 20% 21% +% 

16 792 S 25% 25% +% 

16 49 197, 19% ig% -% 

S£ 566 <7% 4F, 47*, +1% 

34 96 2858 24% 23% 23% 

70 36 54 16% 76% 16% +% 

50 9% 9% F, 

SB 8% 6% F, +% 

14. 229 4% 4 4% 

£3 356 15% 15 15% +% 

3980 16% 15% IF, +7, 

EnvSy pfl.75 80 232 20 19% IF* +% 

Equifax 08 01 18 86 21% 21% 21% +% 

Equftnk 73 578 4% 4% 4% +% 

Eqmk p(201 08 8 23% 23% 23% -% 

EqtRI n 1 11. 60 9% 9% 9% 

Eqtfls s1£0 £9 19 343 41% 40% 40% +% 

Equitee .18 £0 8 41 77, 7% 77, -% 1 

Ertxnnt-52 10 IB 50S 27% 26 28% +1%{ 

20% EsxCtl 300 £0 X 34 30% 30% 30% +% 1 

10% EsWno 340 13 17 17 17 +% 

HI Ethyl 40 1017 2785 28% 25% 25% -% 
20% 15% Exceha107e 90 2 16% 18% 16% -% 

92 57% Exxon 300 4.1 12 7073 88 87 88 4% 

F F F 

20% FG1C nJ33e .1 13 141 22 21% 21% -% 

“ 17 1001 34% 34% 341, +% 

7£ 10 9851 23% 29% 29% 4% 

20 31 B 11% 11% 11% 

2B 20 19% 19 18 

14 50 14 13% IF, 

94 8 38% 38% 38% -% 

T7D 5% F, 6% 

t» 15 395 15% 15 15% 4% 

30 4 213 12 IF* 12 +1* 

10 279 15% 147, 15% 4% 

24 29 78 -8% 6% 8% -% 

30 18 735 F, 8 8 -% 

00 265 25% 25 25% -% 

£7 11 223 44 431, 43% 4% 

1818 65% 64% 64% 4% 

01 31 49% 48% 49% 

30126 268 42% 41% 42% 4-1 

0 13 5893 36% 35% 36% 4% 

820 121; 12 12 

1914 661 37% 37% 371, 

60 134 45% 45 4F, 4% 

40 16 123 22% 21% 22% -% 

30 16 SB 2F, 22% 22% 

30 13 3907 42% 41 4V, 4-7, 

£8 12 70 46% 45% 45% 

1012 203 33% 36% 35% -% 

01 IS 10 14% 14 14 

& 1118 5% 5% 5% 

13. ' “ 


IF, a-’* Era rid n1£0 
110% 78% EmrsS208 
12), 7% ERad s 
IF, M% EmryA 
43i, 30), Efntaartl.40 
36 2F, EmpQs 2 

22% IF, EnergstOS 
a*, 15% EngIC s 
22% 14% EntsB a 
50% 37t, Enron £4S 
13% Ensmh 00 
18% IF, EnsEjqrt.20 
11% 5% Ensree 
S', 4% Entera 

3% EntaxE 00 
20% 12% Entexlii35) 
24% M% EnvSys 
20 18 - ‘ 

X% 19% 

4% 

25% 23 
HP, 6% 

487, 30 
6 
19 

20 % 

321, 


W* 

:2Mes<i Pi 5% bi 

*9* tor Sack 0* T* l Law OmuOms 

»•( n Fooeeut a 45 11% 11% li% -% 

64% 44 Taauczx 42 TO 15 52% 53% 52% 4% 

rtB% 43*, FsrdM £ 34 8 1007X0% 8F» 88% *1 

IF* U% nOawlJB 99 42 13% 13% 13% 4% 

60% <7, mpwO.06 £1 34 513 52% 51% 51% -% 

19% «% Poowh A* ZB 17 938 » 15% tF, 

3I'i 22% FerttroZSe 9 173 28% 26% 28% +% 

15 6% Franc nf 12a 80 83 13 32% T3 4% 

53% 22% Fmfcfl e £4 4 t3 863 30% 28 28%-% 

17% 14 n«> 220 M. 89 151 13% IS 13% 

33% «% FUGC 04# 4 36 1228 17% 17% 17% -% 

?% 4 fUOG 83* 13 S SB 5% 5% 9* 4% 

25% 15% FrpMc£2Ia 90 B U&B 23% 23% -% 
27% 24% FrpSM pl» 87 13 *90 £B>, 23% 28% 

21% 17% FMP a2« 10 296 16% 16% 18% -% 

8% 3% FrahtS 7% «?, 7 

2*% 26% FrM ptAlfi# 17. 358 21% 21% 21% -% 

3F, 18% Fuquas £« 4 77 23? 31% 30% 31% 4% 

Q Q . Q 

34% 28% GAP W £ 20 7279*6% 4<% 4% 

44% X GATX IX 18 13 793 39% 3F* 29% 4% 

n>, 9% GCA u 2*6 V, 8% P% — % 

131% 67 GSCOL36 tl 10 30 134% 123% 123% + % 

4% 1% GEO 332 4% 41, 4%. 

42*7 32% GTE a £44 7£ » 108X14% 34% 34% 4% 
5F« 44% GTE m ZSO 04 3 46% 4ff. 46% -5. 

35>, 26% GTE pf 2 00 <2 31% 3QT, 37% +1% 

31% 257, GTE * £48 09 X 28 27% 277, 

70% 8% Gauabn-He 10 568 8% 6% Fa 

4 l GMHob 523 3% 3% 3% 4% 

50% 39% C an oe ■ 9 ? £1 23 2068 43% 437, 44 4% 

82% 31 Gw a 00 0 20 778 58% SB X -f-% 

4 % Gaam 20f 2024 31; S% 3% -% 

25% 12% GefCO 02a £4 42 21>, 21% 21% -% 

IF, <0% Gemtl C 1« K% 15% 15% +% 

15 tT, GasM 1S3# 66 248 IF, 12% 127, 4% 

IX 64% GnCortfX 10 18 166 HD% OHS, «a%4% 

105 HCi, Ganepwd 60 103% 103 103 -% 

21 77 GAtn*207* 14. 06 78% 18% 18% -% 

SO 38% GCan 00 1.4 73 102345% 44% 44% 4% 

14% 7% CaCmU 35 368 12% 11% 71% +% 

26% T4% GwOw 7 77 19 18% IF, *% 

87% 6B% GnOyn 1 18 792 62% 82 «2% 4% 

1127, 70% GanCl 252 20 18 7901 KB WO 100 

56% 35*, GanS w> 238 01% SD% 50% -% 

15% 8% Gotta* X 777 6% 6% S% 

2S% W% GnHoet £4 £1 40 15B0 TTT, TT% 11% -*4 

13% 9% GnHcan24 £0 20 12 T1% 117, ip, _% 

38% 157* GfUnre £5 0 153332% 31% 321, +% 

58 36% GnM»e1£8 2020 274051% SF, 90% 4% 

92% 85% GMof 5e 6011 8183 84% B2% 83% -% 

56 4S% GMnt pO.73 70 3 49% 4F, 4B% 4% 

TV, 82 GUCK pf 5 76 3 85% «F* 66% -% 

39% 3F, 

44% *P, 

5% 5% -% 

22 % 22 % 

49% 49% 4% 

15% 76 +% 

48 48% 4% 

14% 14% -1 

47, 47, 4% 

13 13% 4% 

48% 48% 4% 

41 41% +1* 

25% 231, 23% -% 

X 25% 24% 2<% 4% 

33 27% 27% 27% -% 

X 29 X% X 4% 

13 3F, X X 

5 25% 25% . 29% 4% 

6 25% 25% 29% 

4 27% 29% 27% 4% 

ZlOO 76 76 76 -% 

£1 34 334 43% 427, 43 4% 

0 20 182 26% 257, 26% 47, 


4F« 24 SHE 02 10 78 1983 41% 

48% 36% GMH 32 10 16 543 46% 

7% 47, GNC .15 £8 28 315 9% 

j 18% GPU .ISe J 8 597 22% 

68% 47% Genflej 1 £0 18 6827 50% 

20% 10% Gnflutr 15 SB 16 

547, X% GoSgoIX 3J 20 291 48% 

13 U% GTO pH £5 05 Z1301S 

5% Z% Gaseco 5 226 5 

15% 5% GnRad Z77 13% 

541, 40 GenuPtfX £8 X 6G0 48% 

52>i 20 GaPac 1 £4 13 9714 41% 

27% 22 GaPnrpCX £0 78 — 

28% 23% GaPwrpC.47 70. X 
30% 23% GePar pf 3 ft 
X X GaPw pO.44 1£ 

33U 277, GaPw DC 78 TL 
271 4 2«% GePw pr£58 10. 

Z7% 24% GePw pf£S2 10. 

26% 2S% GaPw po.75 W. 

X 78 GaPw pr7 72 m. 

54% 39% Ge«6PdL02 
28% 13% GaWGc.12 


»H| 


IZMadl NW BBfftrrF- 

*jrZ • Stock Dt*. WL t iflBiiW 

47% 38% Manual X 4.212 »% 

F* 4% tubist W»« *1 I* 


11 Mm * 


1» 9! 
91 

If Wh 

«% 


?- a* 

SHW ft* l*t I ***** »*- 

n 1 « *4 m..M !!!% 7 v 


M*re 31448 
UfefiffitoM ' 


46% X>% MwiUP 


i529.S6»3' , 7 »» 

3* r Wl "1 

tl fi 1136 1f% «% *0% * % 
. m»W? M M% » % 
*» kJ 13 1% 1 % » t * » 

;» 1 «% «% «% •/* 

ll » »> »> »:* 

1 a a ssss si ^21 a ss&s a* at £ ^ 

& ar s % * s* 


Ei E, st.’ ’* l, £5»s: a|s 

as? 5 . as Sp^^g s ss ssv. 

s: f* s* Si s .< 5 . 1 

* ^ Si SS2U_ isa, « 3;:i U k 


.«# 


57% 27% HAp*l2) 
10% 5% MRC * 

38S 2«% iafflbGS 88 

a% n M0hr s 

31% 23% tototPwtM 
14% 9% ws*c .40 
47 37 towOG £04 

27% 197* towaR si B* 
£ 1 % 9 MW 41 S 6 
TO lacoCp 06 
40% bvBek £24 
9 


:;isv 


111 6%" 8 ' 8 

23 16 368 X% 29% »% - 

» *1 »l »'» »■) 

02 13 40 X 23% 3* *% J}'« 

4.09 98 10% 9% W% *% 

8 1 » IX 38% 37% 5% * to 

7.8 11 131 £1 »% 20% + % 

II 392 23 22% 32% '% 

£0 47 tt% 18% W% *** 

54 6 383 41% 41 41% * % 

Bti4e 1£ 253 117, 11% 11% -% 

J J J 

IS JWP • 18 437 25% 24% 25% -% 

04% JWT 1.12 36143 SO 91% 90% 31% *t 
<Q% » JWwars.40 1217 490333% 32% » +% 

87% SI JBvr plan 61 If 56% SB 86% +)» 

32% 20% JanwwyW 0 17 198 28% 27 28% -M% 

21% 12% Jw«F480» 24. _ 7913 »% 20% +% | 1Vf 


» 

IF, 

9% 


H 
M% 

IW% H 

m * 

351, 94 
•'I 


4.7 

»4 17 K 

i3 4 3! 

B *PV :s e '* 

S, ,4t 76 D '*3 m '» "• 

umi w 1 «% ’7% 'r* 

Sr Cz* i bis x«i «• «b-, tF'4-% 

***** 1,3 • 11 04% 8*% 

04 9 131 ^ . 

1 273 »> ^4 * * 

40% *1 


MMtt 96 
MMPLttK 


04, 20 MOM 220 4.T 70 6336 XPi *'* 

£% i« 3SJ..5S" i.i ™ 

jU* <v UBMUh - W 173 3 *.f i. * 

* 1 % 


1% Mb h l iP l 
. 99% Me-Ce ' 
22% I2-", Monma bb 
an 63% He n Mg aa 

43% 33% MonPatn 
73% 18% MooFtXJe 


40% x% Jaap ,u# *i» x »i ak » +% x 

43% 36% JatC pf 4 90 8450 40% 40% -% Jy «*, 

’* ') *87. 


108% 32 JwC pi 90S 01 

08% 81% JwC pr 8 50 


08% 81% JWC pr 8 08 M « I B 7 , - 8% MoraOn 

KP, 21% JwC pf £18 08 7 118% n% Me*Ka»» 

2F, 9% Jawfcr* 6 57 13% 12% *% |b 2 ««% lAnoSt X 

to'i 


mo nv n 

Moore .72 
MoorM S3 

MofOn ,T.M 

MoraOn 


_ (n ■ nv IXMaSt n 

JohnJnin 2021 3441 F% +J* Wa 41? M«wSl4» 

JMCnstM 43 14 461 X% 29*i »% +% I55J ^ MoreffS-X 

7 ® 1 > +, **l29% 18% MpRty2.198 

SO 3F« Morton M 


•*% 

30 28% 

74% 63% JhnC F4£S ftO W ' »% 

13% 9% JhnCRnf JO TL 20 OX 13% 13% 0% 

15-18 % JOCK wt 1 W* 3>1fl 5-18 

27% 21% Jmgen 1 30 40 X 257, 28 

— 18% Joan • AO £4 « 294 W, X IF, +'* 

19% JoyMfg 1e 30 81 33% » 33% 4% 

K K K 

«% 13% KOI X £0 18 X 14% 14% 14% 

23% 17 KLM 08a £0 12 636 23% 33 23% 

43% Kmart 1.74 £013 7335 58% 57% 56 

23% 17% KN Engt48 80 2B 87 17% 817% W% -% 


20% 12% Katortc tSf 
10% 8% KaabEffl.40 
4% 1% Kanab 

32% 23 KCtyPL 2 
52 41 KCPL pK3S 

547, 42 KCPL pf40O 
27% 21% KCPL pf£20 
28% 22% KCPL pCL33 
46% KCSou 108 
25% 171, KaoGElX 
4F, KanPLOJO 
32% 23% KanPLwl 
20% 127, Katym 
21 0 KauttfnX 

28% M% KaufBd 03 


040 18 
HQ 8% 


17% 17% -% 

8% 6% +% 


13% 13% MMBtoPlJS 
sy, XP, MonetKW 
35% w knmM -34 
30% 20% MurpO 1 
27 19% MurryOX 

27% M% MukMb 
H 14% MUKMM44 
0% 3 Myert. • 

17% w% uyan a 


»J 67 W-t «’* «;> "V 
40 72 IX 9P% *■* X-, 

A4 M 3 «?» •)% K.% 

60 O »» 3^ ’ ’* 

*1 M H’e 

1)1! 6? 2 ‘j 5* '* 

30 17 4» 39% rr, 73% * % 

2 1 9X 39% ?« : 4 * 

5.10 ilOM'f *3% **1 

i«* 9% 8% r, 

y6W *M *3% ! r, - ■ 

11 y 2:i 71% *> *'i 

31 14 X 4T% 4T 4? 

93 18 » >*'i -^T •“'» 

It 11 173 We *6 

10 15 7*6 41 e 4i% 4t% *% 

BB » 13% «% «'» 

1 2 Si 92 33 3fl K*% W * f% 

26 X *4 3*% J*% 


33% 14 MAPCOlb 


NBD I 12) HI 


11% F, 

33% IS 


GerPd a 15) 9% 

G*xy 1.1B i O » ‘ 


37% 15% PMC 
“ 28% FPL <3pt2 

13% B 7 , FabCtr £8 
21% 8% Facet 
147, Q»j FalrchdX 

39% 34% Palra pO60 
11 6 FWrfd 

«% 14% FamOi r £8 
17% 10% Fe«WM 40 
26% 13 Ferafi 
11% F, F*yOrg£0 
47, Fedora £4 
25), 241, Fedor pfl. 75 
51% 20 FedJCosl.lB 
71% 51 FedExp 
66% 40% FdHm pf4e 
46*, 36% FdMoo 1.60 
48% 291, FodNM 32 
12% 11% FdNM wt 

47% 22% FedtPB .70 
52% 44% FPap p(207 
253, 17% Fedfllt sl.06 
24% 17 FdSgnl 00 

“ X FeiS»al08 
32% Ferro 102 
25 Bdcst • 08 
201; 13% FHtrtk A4 
127, 5% FlnCpA 


1 6 «' 6 

54 27 28% 27 41 

US W% 97, 10 -% 

611 OS 54% 35 4% 


5% FlrtCp pf .X 
38% 23% FlnC pM£Sa 10 

17% 8% FnSSar .10 10 3 

42% 31% Rrefd AO 1.1 9 _ . . 

381; 21% Rraatn 1 2-7 33 1794 37% 38% 38% 4% 

54 51% FlAfl pOOX 5 A 221 6V, 31% 51% -% 

37% 23 PSkS 8100 00 8 87*3 30% 2B% X -% 

56% 41 FBOttn 1 20 9 486 43% 43% 43% -% 

10% F, FBoslFn 189 9% Si, 9% 

2F, 70% FCopHd IS 1140 1F| 13% 13% 

347, 25% FstC hid 00 04 8 788 X% 27% 27% 4% 

“ 3 RBTa* 884 3% 3% 3% 

T4% FBTx p024e 17. 1 19 1* 19 -% 

41, RCJty 7 6 77, 7% 73, 

45% X FFB 108 40 10 363 421, 41% 41% 

S% 6% FFinFd .18 £1 2X 7% 7% 7% 

65i, aft, fHnttteZ-68 017 1878 53 set, 52% +% 

20 Fima p&37 02 1 25% <05% 25% -% 

13% 5% FtMIsa £4 £1 19 407 12 11% 11% -T, 

11% G7* FsPa X 1200 10% 10% 10% 

“ 03 T7 211 27 28 25 -3, 

36 10 154 28% 27% 277, 4% 

£1 11 222 38% 39T, 391, -% 

40 9 X 23% 23T, 23% -% 

It Z 110066% 55% 55% 

17 17% 171, 17% 4 1, 

A X 12 ID, IV, -% 

£4 TO 386 25% X 2$ -% 

£1 16 976 24% 237, 24% 4% 

£5 22 67£ 40% 40 40% - % 

11. 30 14% 141, 141, -% 

J 21 SOS 291, 28% X +7, 

411 107, 10% 70% -% 

A 14 a 48% 48% 4S%-4% 

7010 12X34% 34% 341, 

£0 13 £98 397, 88% 39% +1*i 

136 113 S% 5% S% -% 

2019 114 23 22% 23 +% 


28% 19% FUnm si JO 
37% 27% FlVafik 1 
46% 33% FNVasMX 
“ 227, FrtWsc 02 

59% 54% PWscpNUS 
X% IF, Rachb 
16% IF, FohFd.OSe 
30% 22% FRFG 8 M 
20% Ftee£n02 
4F, 31 Flemng 1 
157, 14% Rexj pH.n 

X% 19% FlgreSf 20 
3F, 10% FhniPt 
5F, 38% Fla EG £0a 
47 34 FlaPro2.40 

«% 23 FtaSti 00 
' 4% FtwGen 

2? Flower J0 
.-»% H% Fluor 


X% 16% GIANT 
13% 9% GtotPs£2» 
£87, 38% GBta 106 
34% 18% Gltotowi 
25% 18% GlewC 
33% X GlwdldKO 
12 10% GGtoc nJ8e 

15-16 VGUjM. 12/ 
67, 2>, v)CSM pf 

H 8% GfcYldtfLOa 

16 9% GkJNug 

% GW wi 
46% 30% (MW 20 
3F, Gdricn 108 
82% 54 GdnA pn«l 
70 29% GoodyrMO 

22% 16% GcdaJ J2 
15% 6% Goebfcs 
24% 14% GauM 

45% Grace £80 
35 20% Grace 00 

52% 37% Gramgr.80 
25 16% GtAFd 00 

X 20 GMPfc AO 
28% 20 GMrn 232m 
49% 22% GlNMca02 
56% 37% GfWFkl10D 
22% 75 GWF Wt 


42% 27% Greyb L32 
X 52 Gteyh p«J5 
14% 8% Grailar. 

15 10% GttwOpOb 

10% 8% GtnSOc £9e 
9% 4), GnTbBJK} 

39| 23 Grumn 1 
28% 26% Gruro pC80 
9% 6% Gruntel .16 

361, 22% Golfrd a 00 
82% 567* GBWst 120 
17 11 GuBRs 

23% 17% Gam pfl JO 
10% 7 GBStUt 
37% 21 GSU prN 
33 231, GSU prV 


19% 18% HanFb n 
18 15 HanJS 1.47a 

18% HanJI 104a 
38% 23 HandimJB 
20 16), HandH 08 

25 15), Hanna .40 

30% 23% Hanna pC.13 
48% 31% Haoftd J6 
14% 10 Hansn s 
46% 28% HarBJ s -40 
30% 21% Hartnd* A2 
19% 13 Harnisb 
421, 27% Hurls 09 
33% 23 Hareco 1 
32% 237, Hrtnw a 1 
21% 18% Hansel 00a 
35% 26% HawS 100 
20% 17% Hhflhbn 
31% 20 HtthCP2J8e 
15% 3% vjHeck* 

26% F, HedaM 
30% 227, HeUran 00 
X% 251, HaOlg 


32*, W, HebnP AO 
65% 48 KefCtM.78 
X HeritC 04e 
X 21 Hrshy s 04 
65% 35% HewFk£2 
53% as Hence! 00 
24% 18% HiShersA4 
157, IV, HrVoH £0 
31% 18 Hilnbd s 35 
.91% 62% Hlton 100 
51% 30% Hfcnm n 
74 46% Hitachi XSe 

22*4 11% Hotktyn 
129% 96% HoilyS 1 
3V, 157, HomeO 
38% 24% HmFSO£0 
20 17 HmeGpOSe 

41 20% Hmatka £0 

13% 7% HmetF s£S 
12% 77, HrrtFB n .15 
102% 827, Honda 03e 
54% 58% HonweO 2 
58% 50t, HrznBnLX 
8% 43, Horizon 

8 7% Hrzma 

45 X HCA 
25% «7, Hoorn a 
38% 25% Houglia08 


S% 97, 

21 % 21 % -1 


5 S -V 
23% 23% +% 
25% 28% 

8% 57, 4% 
x% x% -% 
78% 80% +1% 
15% 


8 OB 22% 22% 22% -% 
£3 3 340 97, 9% S% 

£4117 1824 68% 56% 56% 41% 
2 28% 20 26% 4% 

56 31 18 ITT, is 

£44 567 25% 2V, X +% 

01 70 W, 10% 107, 4% 

538 2% 2% 2% — % 

31 F« 6 F« 4% 
1L 1375 9% 9% 9% 

3 151210 9% 97, -% 

320 11-18 % IVW+Vtf 

0 8 1867341, 33% 33% 4% 

32 64 273 50% 48% 481; -% 

03 S 56% 55% 55% 4% 

£811 1589 63% 81% 61% -% 

£1 46 17% IF, 17 -% 

13 81 14% 14% 14t, -T, 

873 17% 17 17% 4% 

4 A «15 6«% 83% 83% 41 

£1 12 118 29% 20 20 -% 

10 18 448 60 48% 48% -% 

35 4 SX 17% 16% 17 4% 

1£ 78 841 X 31% 32% 4% 

10. 9 8 20% 26% 26% 4% 

£3 19 3205 397, 37% 39% 42% 

30 8 2885 48 46 48 42 

8 19 X 19 4% 

30% 23% GUP 100 7010 18 24% 24 24% 4% 

X 187, GraoT a£Se 1011 1019 27% 25% 25% -7, 

329 78X41% 3B% 41% 42 

70 157 61 X 81 417, 

13 52X12% TV, 12% 4% 
£8 30 134 11% 10% m, % 
32 437 9% 9% 9% 

118 5% " - 

4£10 531 24% 

10. 5 26% 

£3 9 175 87, 

£0 70 20 307, 

1019 43*6 91 
208 91 18 

05 6 23% 23% 23% 

S 1112 7% 7% 7*, 

SO 22 21% 21% 4% 

37 23% 23*, 23% *-% 

H H H 

27% 22), HRE 100 7J 13 40 23% 23% 23% 

29i« 11% HallFB 1| 1578 13% 12% 13% 4% 

38% 17% Halbcn 1 £8 2932 36% 35% 357, 

25% 16% Hahvodl.12 5J 13 67 21% 20% 21 -% 

232 18% 18% 15% +% 

90 43 15% 15% 151; 4% 

90 X X 19% IS), 

£3 14 281 24% 24% 2*% 4% 

£5 64 26% 237, 26% 4% 

20 23 363 20% 20% 20% -% 

70 14 277, 27% 27% -1 

10 19 54 46% 44% 44% -% 

17 1629 14% 137, 14% -% 

0 34 19737477, 45% *5% -7* 
10 21 5*3 237; 23% 23% 

X 492 17% IF, 17 4% 

£4 X 1482 373, » 36% -U 

£1 16 IX 32% 32 32% 4% 

3-7 20 53 27% 27% Z7% +% 

951) 13 19 16% 19 4% 

07 11 470 27% d28% 27 -% 

27 18 177, 18 4% 

90 14 274 25% 2S% 23% 4% 

477 4% 4% 4% 

2446 21% 20% 20% -17 
£314 296 28% 25% 25% 4% 

1.1 22 1007 28% 28% 28% 4% 
50% 38% Heinz 1.12 £6 18 2316 43 <2% 42% 4% 

38% 22% HaineCSOa 0 12 172 32% 32% 32% -% 

~ 1 A 20 211 29% 28% 26% 4% 

£1 14 1436 57 SF, 58% 

.1 5E2 331, 33% 33% 

££18 935 24% 237, 24% 4% 

A 20 9247 63% 62 62% 4% 

10 24 SO <7% <7 47% 4% 

£0 18 43 22% 21% 21% 

10 21 69 137, 13% 13% 4% 

10 19 373 24% 23% 23% 

22 20 420 831, 81% 81% -% 

2265 45 43% 44% +23, 

3 234 67% 68% 66% -ii, 

4 8819 21% 20 21% 41%| 

10 22 X 103 101% IK 4% 

34 19X31 30% 30% +% 

3 0 274 26% 29% 28% +% 

0 5 209 19% 19 19% 4% 

0 78 1298 37% 37% 37% -1*J 
£2 2 313 77, 7% 77, +% 

10 2 2 7% d 7% 7% 

3 20 256 94% 987, 94% +i, 

20 2267 78 75% 77% 41%) 

£4 15 36 57% 57% 57% 4% 

3 22 4% 4% 4% 

39 7% 71, 7% 4% 

■72 1.6 20 5751 43% 44% 4% 

£ 92 £12 21% 21% 21% +% 

1.7 22 259 35% 34% 33 


£1 15 X 15% 15% 15% -% 

£98 10X47% 47 47% 4% 

£1 5 IX 102 IX -2 

90 9 2823 32% 31% 32 4% 

20 1 11% 11% 11% 4% 


21% 13% 

60% 39% HoualruLX 
IX 02 Hctra ptS£5 
39% »% HoubxSLH 
13% 77, HcnrICp J2 

22% W« Huffy .40 20 16 417 197* ig% -fg% +% 
28% 20% HughSp.40 10 72 81 20 25), 25% -% 

£4 87 1860 247, 23% 23% -% 

1.7 22 64 26% 20 26% +% 

20 3X6 35% 33% 33% +2% 

£4 12 31 27% 28% 27% 4% 

I I 1 

20 3329 31% 30% 31% 41 


29% 19% Human .X 
X 20% HuntMf M 
64% 32 riuOEF 08 
X 21% HydrmlsV46 


38% 27% 1C Imk 06 


15% 13% ICM 106# 9J 27 47 13" IV, 15 4% 

3* 10% ICN *155 14% 12% 14 41%I 

»% 22% IE M 10680 10 2X 23% 22% X 4% 

20% 18% MAfn 108 90 >96 17% 17 17 -% 

29% 23 IPTlm n£72e 10. 11 118 28% X 28% -% 

20% 15% RT s 1£Be 7A 16 47 17% 17 171, 4% 

!U Cp 1 10 15 6921 X 61 517, 41*J 

“ ITT j/K 4 4A 13 81 89% 91 41 

100% 81 VT pfO 550 24 39% « 89% 

111 82% ITT pi* 450 40 X 99% 99% 99% -% 

X% 12 IU Int 00 3J 11 10*7 18% 18 16% 4% 

30», 22% IdahoPIJO 7.713 214 23T, a 23% 4% 

& V, IdaalS 1466 3% 3% 3% -% 

32 23*, IHPowr2.84 w. 6 23*1 25% 25% at? 

45% 3T ITPow pa78 90 *20 39»; 39% 39% 4% 

44% 37 IIPow pf 3a 7.7 2 36% 36% 38% -% 

91% 41% ITPow pM.47 10. Z20 43 43 43 +1%. 

fW, 37 HIV 00 tl 21 451 TF, 72% 73 +% 

»• 13% ImoDvn.Ma .fl 359 24*, zp. a«% 4% 

»% 52% br*pGb302a 30 18 2910 93% BP. 91% -1% 

3 II. ^ .«k 0 3 1014 13% 127, 127, -% 

*9% M% WCO £0 13 2937 17% 17*, 17% -% 

26% 21 IndM pRlS 90 10 22 22 22 

g 21% brtM pC£S 9.4 70 24% 24 24 — % 

37% 30% bd£n £12 80 12 19 31 30% 31 4% 

£4 15 264 77% 76% 76% 4% 

2.7 20 8 20% 20% 20% 

17. 3275 » 29 29 -% 

IrHdSt pH.75 6.1 3 S2*« 32*, X', 

inWS p£).62 80 IX 52% 60% 80% -1% 

ballco lb 4.6 14 442 22 £1% 21'* 4% 

bHofta 460 a 7% 77, 4% 

IntoRsc XX 23% 23 23% *-% 

lnloR PaOOm 99 3 “ " " 

4f% 34t 4 InigR pf4£S tl. ]« 

22% 13*4 bkgfl pf 2 

17% 5 Mlpg 102t 27.8 X 

17% 11% iniRFi, 24 70 


«,.ssa,aa*'hss* 

B 052 S" ^ $ h 

9? 3 2S 3 , 23% Z9*b 

90 • 24% id; 24% 

20384 10* 48 47 47*, -1 

£3 13 016 21% 20% «% +t 

8010 78 46% 48% 48% 

8 24% 24% 34% ~% 

W 139 15% 147, 13% +% 

10 212 H% 10% Kr, +4 . - - .. M 

ax, wt NMB0 3* 1.7 9 1706 201, 19 *97, +1%}5*> S®* 

31 22% Kauf pi 100 82 » 24% 23*, 24% +1 £ HXML» 


30 21* » : J 

93 H 33 24 

18 » 25% 

94 42 15% 

iso 7% 

23 761 19* 

N N N 

fl.9 ?8 732 79% 


n 0 ■ h 

25% ?3% -% 
25% 25% 

15*4 Tk% 

7% 7% ♦ % 

U “*J 


22% 13% Kaydwa.40 
85% 42*« Ketkxj 1J8 
34t, 18% Kafwd s 00 
337, 20 Kanm 1 
28), 18 KPToy ,08a 
24 18% KyUdl B1J0 

17% 72% KarrGl .44 
25% 20% KwG pftTO 
37% 23% HerrMd.U 
31 21 Keycp 1.12 

18% 3% KeysCD 
21% 11% Kaytat 02 
371, 25% Kldtfe 1-20 
118% 77% KbnbCB06 
59% 38% KmbCwl 
25% 12% KngVMs 
11% 5% KBAuenJM 
57i, 43% KnghAdl 
29% 17 Keege 
34 28% Koger £80 

19*4 12*4 Kobuor 02 
41% 22 Ropers 00 
3* 30 Kopr pf 4 

72% 28% Korea Atm 
86% 47% Kcwt 108 
37% 25% Krageral-OS 
21% 12 Kuhtm AO 
83% 42% Kyocer07e 
30 19% Kyaor 1 


2.1 19 26 19* 4 1» 19 

2.4 20 1410 86% 56% 56% +% 

£0 14 X 31% 30% 30% -% 

£4 48 IX 29 28% 29 

0 24 170 25 24% 25 4% 

7.0 13 1977 IF, 18% 18% -% 

US 8 12% 12% 12% -% 

£6 13 20% <MM| 19% -1 

£2 737 38 34% 34% 4% 

4£9 112 26% 28% 28% 4% 

10 15% 15% 15% 4% 

£6 40 561 18% IF, 18% 4% 

£5 29 143 33% 33 33 -% 


S'* W, 

4*3| 3&t W 

24*4 13 N» 


£j» » 


7*, 

18 

ft 


3F 4 14% LAC n 
31% 17 LM Hd 
11% 7% U£ (%08a 
1% UJLTV 
2% vJLTVA 
10% MLTV pi 
2% vfLTV pIB 
77, LTV P*C 
V, LTV pID 
18% TV, LOotot 
*9% 18% LOuMtn 2 
40% 32 LedGe £10 
13% 9% Latwge£0 
3V, 25% Lrtp pfV.44 
.19% 9% L a m a urt Cb 
|5_ LemSea . 

{20% wi LndBeo 04 
[19% 19%’ CoMM 08 
7% 4% LaerPt 

18% 8% LaaiPpf 
21% 12% LaaRals.4i 
x% 41% LawyTruw 

29 21% LeeEnt 08 
24% 15% LegMaa 
34% 247, LegPlat08 
17% 147, Lahma 2.66a 
35% V Lennar £4 
IV, 10% LesJFy n 
20% 11 Leucfito 
IF, 8% UbAS 005* 
*5% 3X, UMyCp.72 
101 84 Lilly e 
*17, 187, UOy wt 
48% 24% Umltd s £4 
17*, 12% Lne»Ch08 

30 44% UncN6£18 
277, 25*, UocPi 226a 
>7*, 71% Ufloo 

3F, 43 Lockhdl.40 
331, 38% Locdto 1 
76% 57% Loews 1 
377, 21% Loglcon28 
3F, 23% LomFhBl.12 
32% 21% L0BM12JS8 
5% 1% LonAI wt 

28*; 20% LomasB44 
41% 27% LnStar 100 
13% 9% ULCO 
44 30% LB. |4E 

30% 22 UL pfX 
31% 22% UL pfW 
31% 21% UL pM 
32% 25% UL pfU 
291, 21% UL pfT 
20 17% UL p9» 

237, 19- UL pfO 
38% 287, LangOr 00 


NY8 pf 2.12 TO. 


578 227, 22% 32% 4% 

£8 X IF, F, 10% 4% 

2.120 83* 48% 40% 48% 4% 

19 578 237, 22% 23% 4% 

MSI X 28% 26% 28% 4% 

10 13 17*« 16% 17 4% 

2317 1925 34% 33% 34% +7, 

9,1 2500 45 44 44 -2 

1£ 420 671, 86% 67 4% 

30 19 548296% 36% 57 -T 
£4 53 1752 31 X% 31 4% 

20*83 22 14% 74% K% 

0 46 91 82% 6% 62% — 1 

20 12 37 38% 36% 36% -% 

L L L 

00 « 84 35% 35% 38% -% 

90 W 35 207, 20% 207« 4% 

12. 201 8% 8% 87, 4% 

i-a f .* 

1 26 28 28 -% 

114 8%. 7% 8 4% 

37 

.112 

30 185 12% 

a 89 16% «% 18% % 

8011 X 32 ^31% Sir, % 

10 18 20 11% T1% 71% 

Z«f H««M pi 26 90 

10 m 485 IS 14% 157, 41 % 27 23% HUM pf 

— w - 2 ■ ft ft* ft * + > «*• •**» pH04e 0.1 

J*’ » W ^ 2ft NtoaSh3£te 10. 

t»4 5% 5% 5% 24 14% NicoM 

-- \ 15* S* MCOR10O 

20** *»* 1»% ■»% 18 77, NottAl .12 

£0*2 40 SF, 50% 50% • 21% 6% ItonJRe 

«»« »l * %39%2f% NnkSoalJO 

W 13 17 16% HR, 317a 167. Norak n.Ue 


*4% -% 
920 » " 32 M% *% 
3di to®, 10’z 10% 

NCH . .72 30 18 1® »**, s*> 5> ♦ '* 

27% 2B% NOiB a 04 £6 9 £» £% li« *1* 

77% 4» NOR 1 1.4 19 M» 7 *% «T ; it* - 

9% 3% NL hVLWI 1» *0»n. a Js* ' 

18% w% nl mi it . 

ML «% M0 B 1M 16 ^1 23 * , *% 

7p *% .60 14 51 1400 84-, * ’> 

32% 32% Naeoe a £2 £1 7 01 33% ?*% >4% - % 

«% S% SS MB 39 20 100034% 33% 34 

" 10 19 61 

4 2 on 8% 

£0 23 *»2 63 

NttEdU 21 31 W’l 

Mtcm *4 4 

80 11 41 36% 

£51 6 254 14*. 

54% 47 Mi’ ’ pf 370. 3 4» 

307, 21% NUedE X 20 25 2086 2Vt 

~ — — - * 17 4 

£BW 33 31% 

1579 14% 

70 43 53% 

298 5 

£0 13 *» 22% 2D, a<% 

ir » 11 10*4 73% -% 

70X 34% £>% 3£% '1 

mi 4%' Nntotr 2X0(0% 7% 6 *% 

6% 2% Nav WtA 2X 4% 

4V-- 1 . Nav w<8 473 27, 

1% Itov Wic IX 3% 

. . 15 Nav pfO 3» 24% 

57% Nw pIG 9 11. 7 34 

£1% 9% NWCO .9* 96 9 132 18% 

23% 17% tWvPwel44 7.8 10 241 18% 

22 17% Na*f» prt.X 90 i»0 17% 

30 19% Mevf pn.74 88 ,600 20% 

95% »% NEnpD a 7 4 8 944 . 27% 

22 13% NJftoc al.W 09 14 115 IF, 

U% 13% NRoM 04 &2 20 418 16% 

38% 9*7, NY9E02.X 1L 1*41 25% 

87% W NTS pl« tO 

267, 23% MVS pfAl 85e7 4 


40% 31 MPremJO 

18% 9% NtSaeri 

|X 45 MSampI 4 

«% MSwaw4 
20% MMbb.84 
[15 .10% NStand 08 


39% 34 

43% 90% NwhaflaJOa 

19% 8% NawM10.10e 

8% F, NwfuRe70a 

Wi 8% NwtMGnJG* 

_ 106% 42% NwretM ib 

28% 25% X 41% 95% 11% NawsLUUt 

8% 6% Fi 4% 247, 15% MaMP 2.06 

12% 38% 30% MaMtrt .40 

36% 32% NtoMpCLX 

47 30 NtoMpM.10 

80% 47% Ntok%fS£5 


♦% 

a' »% « s 

9% 6% -% 
?• 6L% *3 

1?7% »% ‘ J 

9% Vm 

x x% -% 

**% 1 *', 

X «A - % 
23% D% ♦% 

4 4 

3»*S 9'S, *% 
M 14 - % 

M% 31% *% 

4% *% 


4'i 4% * % 

2% 2*, ♦'« 
5% 9% -% 
J4% ♦*% 
&V; »'} -% 
17% l.*% -% 

l.”» *6% * '* 

17% tf% •% 
20 % 20 % -% 
26% ■*% 
19% 19% 

* 6 % 16% -% 

3,’, 24', w*. 

ZIOOM'; M% M% -»% 

1 23% ?>% 23% * 1% 

13 20% 20% 20% *% 


£8 15 168 33 
£4 10 201 38 
07. 2 13 9% 

98 » 11 7*, 

£54 1413 90% 


31% 32% *1% 
32% 32% ♦), 
9% «% 

O', • * '( 

Z7'r 27% -3% 


10 37 1723 107% 107% *C2»,-4-% 
132 29% 27% 4% 

2940 18 rt», 15% 

*70. X X 32 •*% 

*170 34), 94% 341, 

*300 42% 41 42% ♦»% 

tOD 47 047 47 -»4 

SO Z1% 021% 21% 

100 73% 022% 23% 

10 10 • 18 18 
87 5- 17% 17 17% 

ftl» 8 % 8 8 % +% 


.1 
TL 6 
11. 
It 
98 
11 . 


9 

80 7 
3 


2 32 10 W% 18% *% 

200 37% 26% Z7>, 4% 

2209 17 *7 17 

14 2064 14% 14% 14% 4 % 

4£ VI 2470 20 28% »% - % 

1.7 11X31% 31 31 -% 



2 £4 20 2711 84% 83% 83% 4% 
*0X94% 33% 34 +7, 

J X 5747 36% 3F, 30% +7, 

70 92 12% 0121,12% -% 

40 7 3S X 48% 48% . 

9.1 10 25% (05 » -% 

X 948 91% 907, 9| 4% 

3£7 2378 44% 43 437, -% 

1018 *0 57% 57% 57% 

1-7 10 1425 807, 58% 60% 42 

10 14 243 27% 27 27%. 4% 

£7 20 1745 301, £F, 30 +1 
11.0 329 23 21% 22% 4% 


40% 29% NoSiP sl.M 
«9 38% NSPw pO.ro 

SO 44% NSPw pH . TO 
.98% 78% NSPw pfflM 
103% 90 NSPW p(704 
105% X NSPw pOLBO 
48% 28% NorTM .40 
23 13% NorTI wl 

97, 3 Nthgat g 

82% 367, Nortrp 1-20 
26% 237, NwtP pCJ6 
20 13% Nw&WMOa 

50 36 Norton 2 


1. ™ “■ 2 Si, 2 "‘i** ff!* "™”- 

5.4 5 313 35% 33% X 

6 367 9% 9% 9% 

*400 43 X 43 

23 29% 267, 287, 

« 29% 29% 29% +% *5* J* Ortlffd 

52 30 29), 29% -% 3ft OlWieH.K 

18 31% 31% 31% J. 1* OSKWtfs 08 

10 277, 277, 277, 36% 22% OcdPe£JO 

120 22% 221, 22% »% 52% OodP p(6£5 

12 22% 22% 22% 4% ^4 m, OOfiCO 

2017 817 X 31% 87% S 4 ??• S® - "* * 

4F, 36% Loral 00 10 17 758 37% 37% 37% -% gj* » OMoW 96 

15 11% LaGenl 04 £19 11 12% 12% 12% -% « 0hEd P^ 34 

4F, 20 LaLantf 1 £7 *85 37% 86% 37% +?] M% OhEd pf7J8 


8.1 II 818 31% 30% 31% 4*) 

£4 *200 43 43 43 - % 

8.8 *350 47% 47% 47% + % 

9.0 Z120F9*; 075% 75% -1 

0.1 *500057% dOB% 56% 

90 2500 98 X X -1; 

1.1 W 731 37% 38% 36% -% 

1 IF, 19% 4% 

768 8% 8% M, -% 

£8 47 1000 43% 44%